Value Added Analysis: Evidence From Nepalese Commercial Banks

Abstract

This paper examines the value added or wealth created by the Nepalese commercial banks. In total 12 banks are considered sample for the study, which has been partition into six banks in each group on the basis of the age of the sample banks. The old age banks are generated higher amount of value added in comparison to young age banks. Nepalese banks are seemed to allocate sufficient portion of value added to the future business expansion and growth, which provided ample size of capital in the context of Nepal. The study finds value allocates to employees, government, providers of capital and retained on business is significantly difference between the old and young age Nepalese banks. Value Added Statement (VAS) is a supplementary additional report of Profit and Loss Statement. Now a day, such value added statement is one of the new technique as regard a part of social responsibility accounting and reporting to the stakeholders. In the context of the Nepal, still there is no mandatory provision for preparing and reporting VAS to their stakeholders.