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  Benefits of the VAS

Introduction to the Benefits of the Vas

The VAS (value added statement) assists to promote the message that a business is a coalition of interests and which business success relies on co-operation among the several stakeholders. It might even foster better relations through encouraging team strength between those with a stake in the business. If employees are recognized as significant stakeholders, they may feel more part of the business team and respond through showing larger co-operation and commitment.

The VAS (value added statement) may also assist managers to appreciate that employees are team members and not just an expense, as portrayed in the conventional income statement.

An additional advantage claimed for the VAS is that some helpful ratios can be derived from this statement. These involve

  • value added to sales revenue (per cent);
  • value added per £1 of wages and salaries (£);
  • dividends to value added (per cent);
  • tax to value added (per cent);
  • depreciation and retentions to value added (per cent);
  • value added to capital employed (per cent).

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