An Added-Value Statement is a financial statement that shows how much value a company has created and how that value is distributed among different stakeholders.

Simple Meaning:

It shows the wealth created by a business and how it is shared.

Value Is Distributed To:

Employees (wages & salaries)

Government (taxes)

Lenders (interest)

Shareholders (dividends)

Company (retained profits)

Example:

If a company’s sales are ₹50,00,000 and cost of purchased materials is ₹30,00,000, the value added is ₹20,00,000. This ₹20,00,000 is then distributed among stakeholders.

Purpose:

Shows contribution of the company to the economy

Highlights social responsibility

Provides better understanding than profit alone

In short, an added-value statement explains how much wealth a company creates and how it is shared.