Accounting: the expanded

The Expanded Value Added Statement (EVAS)

To prepare an Expanded Value Added Statement for SBC, we need to consider both direct and indirect outputs and subsequent impacts of its activities. Direct outputs refer to the direct effects of the organization’s activities on clients. For the SBC, the primary output in this example is a building using sustainable building standards. Indirect outputs can be split into two types: those that are the indirect effects of the organization’s activities on its clients or members, and those that are the indirect effects of the organization’s activities on those other than its clients or members. In the example of SBC, the former includes the reduced costs of energy, water operations and the commissioning of operations and maintenance, and levels of improved health and productivity. The latter includes reduced landfill use and reduced emissions.

As noted, there are two parts to an Expanded Value Added Statement: (1) the calculation of value added by an organization; and (2) its distribution to the stakeholders. Note that the definition of value added is broadened from considering only financial transactions (that are part of the financial statements), to take into account monetised social and environmental impacts. Table 4.4, which presents the value added by SBC, has six columns that refer to different sources of value added:
Financial 1 (F1): information from audited financial statements but does not include expenditures or revenues related to changing social and/or environmental performance;
Financial 2 (F2): information from audited financial statements related to voluntary/proactive expenditures or revenues related to changing social and/or environmental performance;
Financial Total (F TTL): adds together F1 and F2 Social/Environmental (SOCENV1): information about nonmonetised
contributions and outputs for which market comparisons are estimated: potential benefits to customers
Social/Environmental (SOCENV2): information about non-monetised contributions and outputs for which market comparisons are estimated: potential benefits to larger society Combined TOTAL (C TTL): total of F TTL and SOCENV1 and SOCENV2