The following items have been extracted from the accounts:

844 • Accountability 2005 (€m) 2004 (€m)

Other income 844 980 Cost of materials 25,694 24,467 Financial income 188 54 Depreciation/amor tisation 4,207 3,589 Providers of finance 1,351 1,059 Retained 1,815 1,823 Revenues 46,656 44,335 Government 1,590 1,794 Other expenses 4,925 5,093 Shareholders 424 419 Employees 7,306 7,125 Required:

(a) Prepare a Value Added Statement showing % for each year and % change

(b) Draft a note for inclusion in the Annual Report commenting on the Statement you have prepared.