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.


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.


Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Value Added Statement. Payroll & Accounting Heaven Ltd. March 30, 2020
Chicago Manual of Style (CMS):
Value Added Statement. Payroll & Accounting Heaven Ltd. (accessed: March 30, 2020).
American Psychological Association (APA):
Value Added Statement. Retrieved March 30, 2020, from website:

Definition Sources

Definitions for Value Added Statement are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

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