The following Statement of Added Value (in millions of Brazilian reals) was presented in the 2009 annual report of Vale S.A., a Brazilian mineral products company:

Required:

a. Identify the external parties who might be interested in the information provided in Vale’s Statement of Added Value.     

b. In what ways does the calculation of “Total added value to be distributed” appear to differ from a calculation of net income?     

c. Prepare a brief report summarizing the story being told in Vale’s Statement of Added Value.

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Period ended Generation of added value Gross revenue..... Revenue from products and services.. Revenue from the construction of own assets Allowance for doubtful accounts. Less: Acquisition of products. Outsourced services Materials... Fuel oil and gas Energy. Impairment Other costs Gross added value Depreciation, amortization and depletion.. Net added value. Received from third parties Financial revenue.. Equity results.... Total added value to be distributed In millions of Reais Consolidated 2008 72,766 17,706 (32) (2,805) (8,244) (23,958) (3,761) (2,052) (2,447) (6,829) 40,344 (5,112) 35,232 1,221 (1,325) 35,128 2009 49,812 13,919 (23) (1,219) (6,242) (20,653) (2,777) (1,776) (6,920) 24,121 (5,447) 18,674 866 116 19,656