An item that does not change current items: it does not result in an increase in current liabilities or in a decrease in current assets. For example, depreciation/ amortization is a non-fund item: it doesn’t result in an outflow of funds (cash outflows). For depreciation, an entity does not incur any current expenditure during the accounting period. In accounting treatment, operating profits are calculated by adding back the amount of depreciation charge. Other items that do not affect the flow of funds include discount on issue of shares, writing off of preliminary expenses, patents, trademarks, and goodwill, etc.

These items are expenses that appear on a statement of income (generally, classified as capital depreciation, investment gains, or losses), and do not involve any cash payment (fund flow).

This item is also known as a non-cash item.