Important Points for IC 26 - Life Insurance Finance Exam
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Gross Value Added is arrived from the following formula : R = S
Net Value Added can be defined as Gross Value Added less depreciation.
Some of the advantages of VA statement are as follows : Improves attitude of employees, Productivity linked bonus scheme, Diagnostic and predictive tools, Measure of the size and importance of a company, Contribution to national income, Basic conceptual foundation
Limitation of Value Added Statement : It is non-standardised, It cannot substitute the traditional income statement, Giving more weightage to shareholders in VA statement is not possible
Human resource reporting is an attempt to identify, quantify and report investment made in human resources of an organization that are not presently accounted for under conventional accounting practice.
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