The presentation of market values is suggested by the Islamic criteria of full disclosure and it also

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Question:

The presentation of market values is suggested by the Islamic criteria of full disclosure and it also implied by the importance of social accountability in Islam. The principle of social accountability can be accommodated in the income statement by embedding within it a line item showing the calculation value-added and showing the deductions for outflows to factors of production such as wages and salaries, rent and dividends as ‘distributions’ of value-added.

Required: Discuss the main advantages of disclosing value-added in financial statements from an Islamic viewpoint.