Current perceptions of the relevance of the value added statement as additional information to the micro and macro accounting systems : a local investigation

Abstract

Purpose - The main objective of this study is to find from users of financial statements, whether the Value Added Statement can give additional information at company and national level. Methodology - The research strategy employed is a methodological triangulation approach by using self-completion questionnaires, in which forty valid replies were received followed by ten semi-structured interviews. Findings - The study shows that in general there was no association among the stakeholders in their perceptions of the uses of the Value Added Statement in the micro and macro accounting systems, since the respondents from the different user groups very often had similar views. The selected local stakeholders were positive that the Value Added Statement can act as additional information, to the micro accounting system and to the macro accounting system. Value - This study shows that the Value Added Statement is to be encouraged. It suggests how the statement can be elaborated further to enhance its usefulness. Furthermore, it suggests that disclosure of the statement should be made by big companies which have the greatest footprint in the local economy. Moreover, it encourages small and medium enterprises to disclose such information to a responsible government department which would then be able to publish useful benchmarks for meaningful enterprise comparisons.