VALUE ADDED STATEMENT AS A PERFORMANCE EVALUATION TOOL

Abstract

Accountability is responsibility of corporate executives to inform the government, employees, customers and the entire community, as well as shareholders, about the outcome and progress of their work. The value added statement, which provides a clear view of the benefit created by all stakeholders and their share of this benefit, is important in terms of accountability and social responsibility of enterprises. Although the information on how the value added is distributed among the stakeholders can be included in various reports of the enterprises such as sustainability, social responsibility, annual and integrated reports, it is seen that the information is scattered. Presenting this information in tabular form will both increase the clarity of the reports for all stakeholders and can be used as a performance evaluation tool for stakeholders. In the study, the performance of a firm in terms of value added was analyzed by using the financial statements of a loss-making enterprise. The fact that added value is created and that shareholders receive a share from the value added, even in a loss-making period, reveals the importance of presenting the value added statement.