(a) You are required to prepare a value added statement to be included in the corporate report of Hythe pic for the year ended 3 I December 20X6, including the comparatives for 20X5, using the information given below:

(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 through either a Financial Reporting Standard or company law.

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20X6 20X5 000 000 Non-current assets (net book value) 3,725 3,594 Trade receivables 870 769 Trade payables 530 448 14% debentures 1,200 1,080 6% preference shares 400 400 Ordinary shares (l 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