Define: Value Added Statement

UK Accounting Glossary

Definition: Value Added Statement


Quick Summary of Value Added Statement


A Value Added Statement is a financial statement that depicts wealth created by an organisation and how that wealth is distributed among various stakeholders.



What is the dictionary definition of Value Added Statement?

Dictionary Definition


The value-added statement (also known as an added-value statement) is a financial statement showing how much wealth (the value-added) has been created by the collective effort of capital, employees, and others and how it has been allocated for within an accounting period.

Value added is normally calculated by deducting materials and external services from turnover.

The value added is then allocated to employees in the form of wages, to lenders and shareholders in the forms of dividends and interest, and to the Government in the form of taxes, with a proportion typically being retained within the company for reinvestment purposes.


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Full Definition of Value Added Statement


This is a financial statement that shows how much value (wealth) has been created by an enterprise through the utilisation of its capacity, capital, manpower, and other resources, and how it is then allocated among different stakeholders (employees, lenders, shareholders, government, etc.) within an accounting period.


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Value Added Statement FAQ's



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Value Added Statement. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 20, 2019 https://payrollheaven.com/define/value-added-statement/.
Chicago Manual of Style (CMS):
Value Added Statement. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/value-added-statement/ (accessed: September 20, 2019).
American Psychological Association (APA):
Value Added Statement. PayrollHeaven.com. Retrieved September 20, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/value-added-statement/

Definition Sources


Definitions for Value Added Statement are sourced/syndicated from:


This glossary post was last updated: 5th May 2019.