Imagine two companies: one earns R$ 1 billion with 500 employees; the other earns R$ 1 billion with 50,000 employees. In the DRE (Demonstração do Resultado do Exercício, the Brazilian income statement) they look the same. But do they have the same economic impact? No.The Statement of Value Added, known in Brazil as the DVA (Demonstração do Valor Adicionado), was created precisely to answer this kind of question.The DVA tries to answer: "How much wealth did the company generate for society, and how was that wealth distributed?"What is the DVA?The Statement of Value Added shows two things: 1. how much wealth the company created; 2. how that wealth was distributed among employees, government, lenders, shareholders and the company itself (retained earnings). The standard that governs it is CPC 09 – Statement of Value Added (the CPCs are the Brazilian accounting pronouncements, aligned with IFRS).A simple example: a manufacturer sells R$ 1,000,000, but bought raw materials from third parties for R$ 600,000. So it added 1,000,000 − 600,000 = R$ 400,000. These R$ 400,000 are the gross value added: the wealth the company itself created on top of what it bought from other companies.A company had revenues of R$ 1,000 thousand, inputs acquired from third parties of R$ 600 thousand, depreciation of R$ 50 thousand and finance income of R$ 30 thousand. What is the total value added to distribute?Answer key: R$ 380 thousand — 1,000 − 600 = 400 (gross value added); − 50 of depreciation = 350 (net); + 30 received in transfer = 380. R$ 400 thousand is only the gross value added.Who must publish the DVAListed companies: the DVA has been mandatory for them since Law 11,638/07, which added it to article 176, V, of Law 6,404/76 (the Brazilian Corporations Law).State-owned companies: Law 13,303/2016 (article 7) requires public companies and mixed-capital companies, even unlisted ones, to follow Law 6,404/76 and the rules of the CVM (Comissão de Valores Mobiliários, the Brazilian securities regulator) when preparing their financial statements. That is why they usually publish the DVA too.Other companies: limited liability companies, unlisted corporations and companies under the Simples Nacional (Brazil's simplified tax regime for small businesses) are not required by law to publish it, but may do so voluntarily, following CPC 09.The DVA is a Brazilian particularity: international standards (IFRS) do not require it. That is why CPC 09 tells companies that publish IFRS financial statements to present it as supplementary information.Who is required by law to publish the DVA?Answer key: Listed companies, under article 176, V, of Law 6,404/76 — added by Law 11,638/07. IFRS does not require the DVA; it is a Brazilian particularity.Why does the DVA exist?The DRE was designed mainly with shareholders and investors in mind: it ends with the profit, which is what belongs to them. The DVA takes a broader view. It shows the company's impact on workers, government, creditors, shareholders and the economy as a whole.Structure of the DVAThe DVA has two main parts: the generation of wealth (how much the company created) and the distribution of wealth (who received it). The totals of the two parts are always equal.Generation of wealthThe sequence is as follows:RevenuesSales of goods, products and services, other revenues, and the recognition or reversal of expected credit losses on receivables. Note: in the DVA, revenues are shown at their gross amount, including taxes on sales (ICMS, IPI, PIS, Cofins — Brazilian taxes on goods and revenue), because those taxes are part of the wealth created and appear later in the distribution, as the government's share.Inputs acquired from third partiesEverything bought from other companies: cost of goods and raw materials consumed, energy, third-party services, freight and other materials, also including taxes. Losses and recoveries of asset values (such as impairment) also go here.Gross value addedRevenues − Inputs acquired from third parties.RetentionsDepreciation, amortisation and depletion: the part of its assets the company consumed during the period.Net value added produced by the entityGross value added − Retentions. This is the wealth actually generated by operations.Value added received in transferWealth produced by others that reached the company: share of profit of equity-accounted investees, finance income (including foreign exchange gains), dividends received from investments measured at cost, and rents and royalties received.Total value added to distributeNet value added + Value received in transfer. This is the total wealth available for distribution.Distribution of wealthThis is the most interesting part: the DVA shows who kept the wealth. CPC 09 defines five groups.PersonnelDirect remuneration (salaries, holiday pay, the 13th-month salary, profit sharing), benefits (health care, meals, transport, private pension) and FGTS (Fundo de Garantia do Tempo de Serviço, the mandatory severance fund deposit).Taxes, fees and contributionsFederal, state and municipal taxes: IRPJ (corporate income tax), CSLL (social contribution on net profit), PIS, Cofins, IPI, ICMS, ISS (municipal service tax), IPTU (municipal property tax) and also the employer's INSS (social security contribution), which, despite being a payroll charge, goes to the government and not to the employee. With Brazil's tax reform (Constitutional Amendment 132/2023 and Complementary Law 214/2025), the new CBS and IBS taxes go here: 2026 is the test year, with token rates; from 2027 the CBS replaces PIS and Cofins; and ICMS and ISS are gradually reduced until they cease to exist in 2033.Remuneration of third-party capitalInterest and foreign exchange losses on loans and financing, rents and other remuneration paid to third parties, such as royalties and franchise fees. The amount borrowed itself is not included: only the remuneration paid for the use of the money or the asset.Remuneration of own capitalDividends and interest on equity (juros sobre capital próprio, a Brazilian form of shareholder remuneration).Retained earnings or loss for the yearThe portion of profit that stayed in the company (reserves). In consolidated statements, the share of non-controlling interests appears separately.A company took out a loan of R$ 100,000 and paid R$ 12,000 of interest in the year. How much appears as remuneration of third-party capital in the DVA?Answer key: R$ 12,000 — only the remuneration for the use of the money (the interest) is a distribution of wealth. The amount borrowed is fundraising and does not go through the DVA.In the DVA, in which group does the employer's social security contribution (INSS) on payroll go?Answer key: Taxes, fees and contributions — although it is calculated on payroll, the employer's INSS goes to the government. Personnel includes the FGTS, which belongs to the employee.Situations to check in the DVASmall profit and huge taxesVery common in the oil, mining and energy sectors. Example: profit of R$ 5 billion, but taxes of R$ 25 billion. The company looks barely profitable, but it generates enormous wealth for the government.Employees receiving more than shareholdersThis can happen in state-owned companies, banks and labour-intensive businesses. The investor may ask: who is the wealth benefiting?Interest consuming a large share of the wealthExample: creditors receiving R$ 30 billion in interest, and shareholders receiving only R$ 2 billion. This indicates high debt and financial pressure.Shareholders receiving almost everythingThis may indicate excessive distribution, low reinvestment and a risk of losing future growth.What do investors look at?Are shareholders keeping a meaningful share?How much of the wealth goes to the government?How efficient is the company? Does it generate a lot of value added with relatively few inputs?How much goes to banks and other lenders?How much goes to employees?Limitations of the DVAThe DVA is excellent for social and economic analysis, ESG reporting and economic impact studies. But it has limitations: it does not show whether the company generates cash, whether the profit is sustainable, whether equity is growing or whether there is financial risk. For that we still need the Balance Sheet, the DRE, the DFC (cash flow statement), the DRA (statement of comprehensive income) and the DMPL (statement of changes in equity).Example: PetrobrasThe image below is Petrobras's consolidated DVA for the first quarter of 2026, compared with the first quarter of 2025.Petrobras's DVAPetrobras generated about R$ 105.7 billion of wealth in the quarter, but only about R$ 32.7 billion remained as profit for its shareholders.RevenuesSales of products and services and other revenuesThis is gross billing, including taxes on sales: crude oil, diesel, gasoline, gas, other oil products and other operating revenues.Net reversals of expected credit lossesAdjustments related to customers who might not pay. When the estimated loss decreases, the reversal increases revenue.Revenues related to the construction of assets for own useWhen Petrobras builds assets for itself (platforms, refineries, infrastructure), the DVA recognises this amount as revenue, because the costs of that construction also appear among the inputs.Total revenuesThis is the gross wealth produced before deducting what was bought from suppliers.Inputs acquired from third partiesRaw materials and products for resaleCrude oil, oil products and gas bought from third parties, including imports.Materials, energy, third-party services and otherThis covers suppliers, maintenance, energy and contracted services. If this line grows a lot from one period to the next, the analyst should look for the reason in the notes.Tax credits on inputsThese are the recoverable taxes (such as non-cumulative ICMS, PIS and Cofins) embedded in purchases. Since inputs are presented including taxes, these credits are deducted so that the effective cost of inputs is not overstated.Reversal of impairmentIt means that assets previously considered impaired have recovered value. The effect is positive, but it does not represent a cash inflow.Total inputsThis is the total spent on goods and services bought from third parties. Comparing this total with revenues shows how much of its revenue the company passes on to suppliers.Gross value addedOne of the most important lines: the wealth created by Petrobras before considering the wear and tear of its assets.Depreciation, depletion and amortisationAt Petrobras, this covers platforms, refineries, pipelines and wells. Depletion is the equivalent of depreciation for oil and gas reserves, which are used up as they are produced.Net value added producedThe wealth actually created by operations, after deducting the consumption of assets.Value received in transferThis is wealth that was not produced directly by the company.Share of profit of equity-accounted investeesPart of the profit of the investee companies.Finance incomeInterest received and other investment income.Rents, royalties and otherAncillary income.Total received in transferIt is small compared with the size of the operation, which is positive: it shows that the wealth comes from the core business.Total value added to distributeThis is the "pie" that will be shared.Where the wealth wentPersonnel and managementThe wealth distributed to employees, split into salaries, benefits and FGTS. At Petrobras, about 11% of the wealth went to employees.Taxes and government takeTaxes split by level of government (federal, state and municipal), plus the government take typical of the oil industry, such as royalties and special participation. At Petrobras, about 59% of the wealth generated went to governments, a typical feature of the oil sector.Financial institutions and suppliersThis is the remuneration of third-party capital: interest, exchange and monetary variations and charges on loans and leases. In the quarter, this line was negative, at about −R$ 1.0 billion. That does not mean Petrobras owes nothing to banks. It has net debt of around US$ 60 billion. The most likely reason is the exchange rate: with the real appreciating against the dollar in the quarter, the exchange rate change reduced the debt in reais by more than the interest increased it. This effect can reverse in the following quarter if the exchange rate turns.Non-controlling interestsThe part of the subsidiaries' profit that belongs to minority shareholders. Almost irrelevant at Petrobras.Retained earningsThe portion that went to Petrobras's shareholders. In a quarterly DVA, profit usually appears as retained, because the dividends for the quarter are approved after it ends.Conclusion of the exampleMany students look at the DRE and say: "Petrobras earned R$ 32.7 billion." The DVA offers another view:DestinationAmountGovernmentR$ 62.6 bnEmployeesR$ 11.4 bnLenders-R$ 1.0 bnShareholders (including non-controlling interests)R$ 32.8 bnThe sum is about R$ 105.7 billion, the same as the total value added to distribute (the small difference comes from rounding the parts). And total value added grew from R$ 100.4 billion in the first quarter of 2025 to R$ 105.7 billion in the first quarter of 2026, which shows an increase in the wealth generated by the company.In Petrobras's DVA for the first quarter of 2026, the financial institutions and suppliers line was about −R$ 1.0 billion. The most appropriate reading is:Answer key: The gains of the period, such as the exchange rate change with a stronger real, exceeded the interest on the debt — the company has significant debt, and the line can turn negative when the exchange rate change reduces the debt in reais. This effect can reverse when the exchange rate moves.Exercises1) (Instituto Legalle - 2026 - BADESUL - RS - Development Technician - Accountant) On analysing the accounting information of a company in the clothing sector that applied for financing from Badesul, specialised in the production and sale of custom furniture, it presented the following accounting information at 31/12/2025:• Gross revenue from sales of goods: R$ 840,000.• Finance income earned in the period: R$ 40,000.• Cost of goods sold (including recoverable taxes): R$ 250,000.• Depreciation expense on property, plant and equipment: R$ 10,000.• Recognition of expected losses on doubtful receivables: R$ 20,000.• Third-party services expense: R$ 30,000.Based on this information, and considering the criteria for preparing the Statement of Value Added (DVA), mark the alternative that CORRECTLY presents the total value added to be distributed by the company in 2025.A) R$ 590,000.B) R$ 580,000.C) R$ 570,000.D) R$ 540,000.E) R$ 530,000.2) (SELECON - 2026 - EMGEPRON - Accountant) The benefits granted, represented by amounts relating to health care, meals, transport, pension plans etc., make up the distribution of wealth, in the Statement of Value Added, in the group called:A) personnelB) additional remunerationC) taxes and social contributionsD) remuneration of third-party capital3) (IDECAN - 2026 - PC-SC - Civil Police Agent) Mark the alternative that presents the financial statement that is related to economic information, as well as interfacing with the disclosure of environmental, social and governance (ESG) elements, and whose purpose is to show the wealth created by the entity and its distribution during a given period.A) Statement of Changes in Net Assets – DVP (public sector).B) Statement of Value Added – DVA.C) Income Statement – DRE.D) Statement of Changes in Equity – DMPL.E) Statement of Sources and Uses of Funds – DOAR.4) (COPEVE - UFMG - 2026 - UFMG - Accountant) Companhia Delta S.A. presented the following balances at the end of 2024:Based exclusively on the Statement of Value Added (DVA), mark the alternative that presents, respectively:Gross Value Added; Net Value Added Produced by the Entity; and Total Value Added to Distribute.A) R$ 450,000.00; R$ 450,000.00; and R$ 511,000.00.B) R$ 442,000.00; R$ 420,000.00; and R$ 481,000.00.C) R$ 442,000.00; R$ 420,000.00; and R$ 506,000.00.D) R$ 450,000.00; R$ 428,000.00; and R$ 489,000.00.5) (VUNESP - 2026 - UNIFESP - Accountant) Based on the guidelines established by CPC 09 – Statement of Value Added (DVA) and by corporate law, mark the correct alternative regarding the requirements for preparing and disclosing the DVA.A) The DVA must be prepared on the accrual basis, ensuring the proper recognition of revenues and expenses in the period to which they relate.B) The DVA does not need to provide comparability between years, since its purpose is only to show the formation of wealth in the current period.C) The consolidated DVA is obtained by simply adding up the individual DVAs of the subsidiaries, with no specific procedures for its preparation.D) The share of non-controlling shareholders should not be considered in the distribution of value added in the consolidated statements.E) Consistency with the income statement is not required, since the criteria for measuring value added are independent of the other statements.6) (CONSULPAM - 2026 - Municipality of Eusébio - CE - Internal Control Auditor - Accounting) The Statement of Value Added shows the wealth generated by the entity in a given period and its distribution among the various economic agents, such as employees, government, lenders and shareholders. Its use reinforces the social character of accounting. On this subject, the DVA is mandatory for:A) All limited liability companies.B) All public entities.C) Listed companies.D) Micro-enterprises under the Simples Nacional.7) (FGV - 2026 - AL-RO - Legislative Analyst (Accounting)) In 2025, a business company received a loan of R$ 20,000 from a financial institution and of R$ 10,000 from a group company. The interest incurred in the year on the two loans was, respectively, R$ 4,000 and R$ 1,000.When preparing the annual Statement of Value Added at 31/12/2025, the company recognised as Distribution of Value Added - Remuneration of Third-Party Capital:A) R$ 4,000.B) R$ 5,000.C) R$ 11,000.D) R$ 24,000.E) R$ 35,000.8) (FGV - 2026 - AL-GO - Legislative Analyst - Accountant) An entity has financial investments abroad.In 2025, the entity recognised R$ 20,000 of interest income and R$ 4,000 of exchange rate variation on the investment.In the entity's annual Statement of Value Added at 31/12/2025, the amount to be recognised as "Value Added received in Transfer" isA) zero.B) R$ 4,000.C) R$ 16,000.D) R$ 20,000.E) R$ 24,000.Answer key1) C. Revenues: 840,000 − 20,000 (expected losses) = 820,000. Inputs: 250,000 (cost of goods sold, including taxes) + 30,000 (third-party services) = 280,000. Gross value added: 540,000. Less depreciation: 530,000. Plus finance income: 570,000.2) A3) B4) D. Revenue: 820,000 − 20,000 (deductions and allowances) = 800,000. Inputs: 310,000 (cost of goods sold) + 26,000 (third-party services) + 14,000 (electricity) = 350,000. Gross value added: 450,000. Less depreciation and amortization (22,000): 428,000. Plus value received in transfer, 36,000 (equity method) + 25,000 (financial income): 489,000. Personnel, financial expenses, interest on equity and income taxes do not enter this calculation: they are distributions of the value added.5) A6) C7) B. Only the interest counts: 4,000 + 1,000 = 5,000. The amount borrowed is not a distribution of wealth.8) E. Interest and foreign exchange gains are finance income: 20,000 + 4,000 = 24,000.
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