You are required to prepare a value added statement to be included in the corporate report of Hythe

You are required to prepare a value added statement to be included in the corporate report of Hythe plc for the year ended 31 December 20X6, including the comparatives for 20X5, using the information given below:

   

20X6

20X5  

£000

£000

Non-current assets (net book value)

3,725

3,594

Trade receivables

870

769

Trade parables

530

448

14% debentures

1,200

1,080

6% preference shares

400

400

Ordinary shares (£1 each)

3,200

3,200

Sales

5,124

4,604

Materials consumed

2,934

2,482

Wages

607

598

Depreciation

155

144

Fuel consumed

290

242

Hire of plant and machinery

41

38

Salaries

203

198

Auditors” remuneration

10

8

Corporation tax provision

402

393

Ordinary share dividend

9p

8p

Number of employees

40

42

(b) Although value added statements were recommended by The Corporate Report, as yet there is

no accounting standard related to them. Explain what a value added statement is and provide reasons as to why you think it has not yet become mandatory to produce such a statement as a component of current financial statements either through a Financial Reporting Standard or company law.

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