(a) You are required to prepare a value added statement to be included in the corporate report of Hythe plc for the year ended 31 December 20X6, including the comparatives for 20X5, using the information given below:

(b) Although value added statements were recommended by The Corporate Report, as yet there is no accounting standard related to them. Explain what a value added statement is and provide reasons as to why you think it has not yet become mandatory to produce such a statement as a component of current financial statements either through a Financial Reporting Standard or companylaw.

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20X6 20X5 £000 3,725 3,594 769 448 12001,080 Non-current assets (net book value) Trade receivables Trade payables 14% debentures 6% preference shares Ordinary shares (El each) Sales Materials consumed Wages 870 530 400 5,124 3,200 3,200 4,604 2.934 2,482 598 144 242 38 198 Fuel consumed Hire of plant and machinery Salaries Auditors' remuneration 290 203 402 393 Ordinary share dividend Number of employees 40 42