A The following information relates to the Plus Factors Group ple for the years to 30 September 19X8 and 19X9.

Required:

(a) Prepare a statement of value added for the year to 30 September 19X9 and give comparative figures for 19X8. Include a percentage breakdown of the distribution of value added for both years.

(b) Produce ratios related to employees’ interests, based on the statement in part (a), and

(c) explain how they might be of use.
Explain briefly what are the difficulties of measuring and reporting financial information in the form of a statement of value added.

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Notes 19X9 19X8 000 000 Associated company share of profit 10.9 10.7 Auditors' remuneration 12.2 11.9 Creditors for materials at beginning of year at end of year Debtors at beginning of year at end of year 11% debentures Depreciation 1,109.1 987.2 1,244.2 1,109.1 1,422.0 1,305.0 1,601.0 1,422.0 1 500.0 600.0 113.7 98.4 Employee benefits paid Hire of plant, machinery and vehicles. Materials paid for in year Minority interest in profit of the year Other overheads incurred Pensions and pension contributions paid Profit before taxation Provision for corporation tax Salaries and wages Sales 109.9 68.4 2 66.5 367.3 3,622.9 2,971.4 167.2 1,012.4 144.1 738.3 319.8 222.2 1,437.4 1,156.4 464.7 527.9 1,763.8 1,863.0 3 9,905.6 8,694.1 Shares at nominal value: Ordinary at 25p each fully paid 7% Preference at 1 each fully paid Stocks of materials: beginning of year end of year Other information: Ordinary dividends were declared as follows: 44 2,500.0 2,000.0 500.0 200.0 804.1 689.7 837.8 804.1 Interim 1.12 pence per share (19X8 1.67p) Final 3.57 pence per share (19X8 2.61p) Average number of employees was 196 (19X8 201)