A Value Added Statement (VAS) is a financial statement that shows the value added by an organization during a specific period.
• It provides a breakdown of how value is generated and distributed among different stakeholders in the business.
• The Value Added Statement is particularly useful for understanding the economic impact of an organization beyond traditional financial statements.
Advantages of Value Added Statement:
• It provides a comprehensive view of a company’s financial performance by focusing on the value added at each stage of the production process.
• It highlights the economic contribution made by the company to different stakeholders, including employees, suppliers, and shareholders.
• It increases transparency in financial reporting by breaking down the value added into components, making it easier for stakeholders to understand the sources of value creation.
• It assists in decision-making processes by providing insights into the economic impact of various business activities.
