ACC101: Non-Financial Information's Importance in Business Decisions

This report examines the significance of non-financial information in introductory accounting. It emphasizes that while financial data is crucial for business growth and decision-making, non-financial information, including corporate governance, business ethics, and risk management, is equally vital. The report highlights how these factors influence investment decisions, resource allocation, and overall business performance. It discusses the importance of corporate governance structures, ethical conduct, and compliance with regulations like ASX corporate governance principles. Furthermore, the report explores the role of directors' reports, competitor analysis, and market conditions. The conclusion underscores the relative importance of non-financial information for both businesses and investors, offering a comprehensive overview of its impact on strategic decision-making.

INTRODUCTORY
ACCOUNTING

TABLE OF CONTENTS
Non Financial Information and its Importance................................................................................1
REFERENCES................................................................................................................................3

Non Financial Information and its Importance
The financial information for every business is an important aspect for the growth and
making decisions. Along with the financial information non financial information is also of
equal importance for the business. It is essential in the decisions for making policies and in
allocation of resources. Company if do not take effective steps for the financial performance, it
may not be able to achieve its desired goals and objectives (Haller, Link and Groß, 2017). A
business is not only affected by the factors related to the financial but also by other factors like
social, environmental changes, competition and many other. There are number of times where
the performance of company is affected more by the non financial factors than the financial
figures of revenues and operational cost.
Investors and experts often neglect the information that is not related with the financial
and profitability but these information have relevant importance in making investment decision.
The non financial information include the corporate governance, business ethics and like others.
The corporate governance of company provides for the solid management foundations and
oversight. The governance structure lays the roles and responsibilities of different executives and
directors. Board of the company has the responsibility of making strategies for improving the
financial performance, management of executives and board along with the directors. The
effectiveness of the directors and the practices followed in name of governance. The roles and
responsibilities of well known directors reflects success prospects of business.
Company also follows ethics in its decision making process. The group in company is
committed for operating ethically and honestly in the business dealings. Company follows strict
cod of conduct that applies to its officers, directors, consultants and contractors of the group. The
company follows the principles given by ASX corporate governance (Quinn and Connolly,
2017). It has adopted diversity policy that provides to the candidates having commensurate
expertise and experience, will be given preference in the appointments for enhancing the
diversity. Company also follows the equality and diversity as it has female employees around
47% in proportion to males.
Audit committee has been established for safeguarding the internal and financial risks
that can affect the business. Risk management and recognition is important and involves
external factors affecting the business (PSC Insurance Group, 2019.). There are various risks
like personal risks, regulatory risks, financial risks and underwriter risks.
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The other non financial information includes the directors report that provided for the
steps and policies taken and their results. Qualification and experiences can be judged by of the
directors and top managerial executives.
Company makes balanced and timely disclosures of its policies and other issues
complying with Continuous disclosure policy that is designed for ensuring compliance with the
ASX listings Rules & Corporation Act 2001.
Competitors analysis, market growth, economic conditions are significantly important for
the business to be considered in its decision making process (Krištofík, Lament and Musa,
2016). Therefore it could be said that the non financial information are relatively important for
the business and investors in decision making.
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REFERENCES
Books and Journals
Haller, A., Link, M. and Groß, T., 2017. The term ‘non-financial information’–a semantic
analysis of a key feature of current and future corporate reporting. Accounting in
Europe. 14(3). pp.407-429.
Quinn, J. and Connolly, B., 2017. The non-financial information directive: An assessment of its
impact on corporate social responsibility. European Company Law.14(1).pp.15-21.
Krištofík, P., Lament, M. and Musa, H., 2016. The reporting of non-financial information and
the rationale for its standardisation.
Online
PSC Insurance Group. 2019. [Online]. Available through :
<https://www.pscinsurancegroup.com.au/wp-content/uploads/2019/08/2019-PSCIG-Annual-
Report.pdf>.
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