Extended scoping of the value-added statement to broaden corporate sustainability disclosures: leveraging on the mechanics of traditional accounting practice

Richard Kojo Tawiah*, Andrea B. Coulson, Krishna Paudyal

*Corresponding author for this work

Research output: Contribution to conferencePaper

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Purpose - The purpose of this paper is to examine and explain how the value-added statement (VAS) could be re-presented in a more comprehensive format using the same basic accounting framework. In doing so, the paper examines the need to spool out more metrics of values, not just from the income statement (Statement of Comprehensive Income or Profit and Loss Account), but also from the other three traditional financial statements, namely, the Statement of Financial Position (Balance Sheet), the Statement of Cashflows and the Statement of Changes in Equity.

Design/methodology/approach – The researcher adopted and built upon the Haller and van Staden (2014) revised VAS reporting model proposed to incorporate an Integrated Reporting instrument.

Findings – The research finds that Haller and Van Staden (2014) proposed VAS format is quite elaborative and recognizes extra items of value generation and appropriation is worth disclosing by firms. However, this paper recognizes some missing links in the proposed format, significant among which is that, the expanded format limits value creation and distribution to only the income statement items without cognizance to the value items in the other financial statements.

Research implications - Further research is required to unearth additional relevant items of values created and appropriated by the firm. Value should not be constricted to just quantitative metrics. Including other important items, such as, natural capital and other capitals result in both qualitative and quantifiable values which can be reconciled to firm activities and disclosed appropriately.

Practical Implications – The research assists the development of accounting practice (including audit and assurance), standards and corporate policies by articulating the expanded meaning of values to stakeholders. This helps in enacting new and/or modifying and revising existing practice standards, such as the IASs, ISAs, GAAPs and IFRSs, to incorporate the recognition, measurement and disclosure of individual, corporate and ultimately national values.

Social Implications – The expanded conceptualization of value could inform national governments and related stakeholders on how to model and widen their national accounting standards and practices to appropriately unearth and recognize values which were previously undisclosed. This could aid in the proper assessment of economic welfare and national well-being.

Originality/value – The paper carefully examines value reporting from the traditionally simplistic approach by assessing the interrelationships between the various models and formats. The expanded assessment of values from the conventional financial statements, at a start, without limiting values to only the economic transactions of the income statement, leads to a proper scoping and framing of the concept of value.
Original languageEnglish
Publication statusPublished - 7 Jul 2021
Event13th Interdisciplinary Perspectives on Accounting Conference 2021 - University of Innsbruck, Innsbruck, Austria
Duration: 7 Jul 20219 Jul 2021


Conference13th Interdisciplinary Perspectives on Accounting Conference 2021
Internet address


  • value-added statement
  • sustainability
  • financial value
  • non-financial value
  • reporting


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