Gross Value Added (GVA) → GVA is arrived at by deducting from sales revenue the cost of all materials and services which were brought in from outside suppliers.
Retained Profit of a Company for a given accounting year can be derived as:
R = S – C – Dep. – W – I – T – Div.
R = Retained Profit
S = Sales Revenue
C = Bought in Cost of Materials and services
Dep. = Annual Depreciation Charge
W = Annual Wage Cost
I = Interest payable for the year
T = Annual Corporate Tax
Div. = Total Dividend payable for the year
Rearranging above, GVA can be obtained with equation
S – C = R + Dep. + W + I + T + Div.
It is very simple definition of GVA, though it may include many other things.