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Examples of Non Financial Factors

In accounting, we do not record non-financial factors and transactions. If there is any transaction which non-financial nature, we will not record in financial accounting. But still non financial factors are important in accounting. We should study about them.
  1. IFRS From GAAP
It is non-financial factor but it will affect the financial factors. IFRS the accounting rules which apply on the whole country GAAP are not closing. So, we have to learn IFRS.

2.   Competition

Increase and decrease completion will affect indirectly to our SALES. For example, you have online business; one competitor is using your copyrighted content for promotion of his side. So, still it is non-financial factor. You are not interested them from accounting point of view but indirectly, it is affecting your intellectual property. So, you have to watch who are your competitors and what are they doing.

3. Govt. Policies

Govt. Policies are not base of any entry. So, these are non-financial factor in accounting but we have to study its each updates. For example, Govt. Of India is promoting foreign MNC, its side-effect is on our domestic industry. Slowly, sales of domestic industry decreased. As account manager, you have to check the different govt. Policy changes. On this, basis, he has to take decision.

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Accounting Education: Examples of Non Financial Factors
Examples of Non Financial Factors
Accounting Education
https://www.svtuition.org/2012/06/examples-of-non-financial-factors.html
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