A Proposed Model for Narrative Disclosure According to Integrated Reporting to Reduce Accounting Information Asymmetry
Abstract
The study aimed to present a proposed model that shows the information content of narrative disclosure in light of integrated reporting and the impact of this model in reducing the phenomenon of asymmetry of accounting information, and to demonstrate the effectiveness of narrative disclosure in enhancing integrated reporting by feeding the descriptive aspect of reporting with all elements and dimensions based on the directives of the international framework for integrated reporting, in addition to shedding light on the theoretical aspects of each of narrative disclosure, integrated reporting, and information asymmetry. The study concluded that narrative disclosure is an essential part of integrated reporting in providing explanation, clarification, and analysis of the company's financial position, in addition to providing additional information with a social, environmental, economic, governance, strategic dimension, and prospects, in the form of a single report characterized by clarity, brevity, accuracy, and completeness, which meets the needs of stakeholders for information to evaluate the company's performance and thus reduces the asymmetry of accounting information. Therefore, the study recommends the necessity of keeping pace with international developments in the field of disclosure and accounting reporting and benefiting from the experiences of some leading countries in this field of narrative disclosure and integrated reporting practices due to their role in enhancing the information content of reports and making them more suitable for the largest category From stakeholders.