Volume-7, Number - 1  
Month: January - June, 2011
Value Added - A Measure of Corporate Performance
Alok Kumar Pramanik,
Bhatter College,
Paschim Medinipur

Balasundaram Nimalathasan,
University of Jaffna,
Jaffna, Sri Lanka

Page No. 64

Purpose/Aim : The purpose of the study is to disclose the value added as an effective financial tool fo r evaluating pe iformance of an enterprise. The contribution of an entelprise to the society can not be calculated and reported through the traditional profit and loss account. Thus, the study will help to modify the accounting reporting system.

Methodology/Approach : The study is based on secondary data. The value added statement may be conceived as a modified version of the income statement and itcan be prepared on the basis of items andfigures obtained in the income statement.

Findings/Conclusion : The value added productivity techniques has been adopted by some countries in measuring national income. Gradually the corporate industrial enterprises will become aware of the great potential inherent in the value added concept to measure productivity.

Keywords : Value Added, Corporate Peiformance, Accounting, Reporting System, National Income, Macro-Economic.