THE IMPACT OF VALUE ADDED STATEMENT IN FINANCIAL REPORTING AND THE EVALUATION OF CORPORATE WEALTH DISTRIBUTION

Abstract

This paper assesses the impact created by the Value Added Statement in the scene of f5nancial reporting by Companies. The Statement 5s mostly directed to employees as recommended by Corporate Report of Accounting Standard Comrritt-' of 1975. The distribution pattern of wealth creates by Companies to the three principal Stakeholders - Shareholders, employees and the government was evaluated. The paper also sought to discover other use of the statement, its popularity and willingness of the companies to contribute towards corporate social spending and the disclosure requirements. Ten quoted companies out of seventy were chosen for survey in which questionnaires were distributed to some Accountants, employees cum shareholders and Employees without shareholdings. This formed the primary data while annual financial statements of the companies formed the main source of secondary data. Pearson's product moment correlation coefficient, percentages, Kendall co-efficient of concordance "W" and Chi square "X" statistics were used in testing :he hypotheses.