By Ahmed Riahi-Belkaoui
A new form of accounting statement--the value-added statement--is gaining popularity in the United Kingdom, and could easily be adopted in the United States, with beneficial results. Riahi-Belkaoui maintains that the value-added statement can be viewed as a modified income statement: it reports the operating performance of a company at a given point in time, using both accrual and matching procedures. Unlike the income statement, however, the VAS is interpreted not as a return to shareholders but as a return to the larger group of capital and labor providers. Belkaoui spells out how the statement is developed, how it can be adapted to U.S. needs, and what its potential benefits would be. His book will thus interest not only accountants, teachers, and students who follow trends in international and multi-national accounting, but also those who want to prepare for the development of techniques and procedures that might be anticipated in the U.S.