Challenges to overcome
Valuing non-financial impacts
Assessing the importance, materiality or value of non-financial impacts can be a major difficulty. If the impacts are not given sufficient value, they will not factor highly enough in the decision being made. Conversely, valuing them too highly such that financial impacts are ignored, could lead to the whole appraisal methodology being questioned. There are no easy answers here. Different techniques approach the question in different ways although the general issues have been explored well in an AccountAbility Forum paper.
Are there challenges in this area we haven’t discussed? If so, please tell us about them.
Do you have another example of how these challenges can be overcome? If so, please submit a case study.