Traditional financial statements include only interest costs associated with any debt and not the return required or expected by equity holders,which is included in the EVA approach.

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Traditional financial statements focus on accounting profits and include interest costs as an expense, reflecting the cost of debt financing. However, they do not account for the cost of equity, which represents the return required by equity investors. The Economic Value Added (EVA) approach, on the other hand, incorporates both the cost of debt and the cost of equity to assess a company's financial performance more comprehensively.

Traditional Financial Statements Include Only Interest Costs Associated with Any