Important Points for IC 26 - Life Insurance Finance Exam
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Value Added Statement is a supplementary financial statement that shows how much value (wealth) a reporting entity has been able to create during a specified period, through the utilisation of its capacity, capital, management, human resources and other resources. The statement also shows how this value created is distributed to different stakeholders involved.
In economic terms, value added is the market price of the output of an enterprise less the price of the goods and services acquired by transfer from other firms. Value added can provide a useful measure in the gauging performance of the reporting entity.
Net Value Added (NVA) - NVA can be defined as GVA less depreciation.
American Accounting Association has defined human resource accounting as "the process of identifying and measuring data about human resources and communicating this information to interested parties".
Value Added Statement is a supplementary financial statement that shows how much value (wealth) a reporting entity has been able to create during a specified period, through the utilization of its capacity, capital, management, human resources and other resources.
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