INTEGRATED NARRATIVE DISCLOSURE Essay Example | Topics and Well Written Essays - 1000 words

INTEGRATED NARRATIVE DISCLOSURE - Essay ExampleThis inevitably gives rise to a better understanding to investors and improves relationships between stakeholders. In addition, the underlying routine needed to generate this information can also improve governance and enhance board effectiveness. A more important reason why firms nip write up reporting is that it is non a burden, rather an opportunity, which when used appropriately can act as a basis for developing real competitory advantage. According to Brennan, Pierce & Encarna, (2000), narrative disclosure is essential in effective communication in organizational audience, inclusive of stakeholders, sh areholders, and the entire society. For instance, corporate narrative records are used to give an account of managerial decisions and actions, to notify shareholders on strategies, to institute organizational reputation and identity, to influence organizational audiences concerning the legality of a firm, to persuade shareholders on the benefits of a takeover or merger. According to the Financial Reporting Council, (FRC), the most vital disclosures for shareholders are sporting out the most critical risks and how to manage them an score of the monetary position and financial results a blueprint of future prospects and plans and a description of the business model. Narrative reporting plays entirely the right notes, though it plays all of them at the same time. From the time of the financial crisis, as anticipations have been determined by yearly reports as descriptors of models in business, opinions have come up more or less its potential to communicate business models. Growing regulatory complexity, uncertainty as to what audience narrative reports serve and extreme detail have all coordinated to create a culture that produces a deafening dissonance of noise on each individual attempting to read an annual report. Data overload is adversely hampering the significance of narrative reporting, a case that is quite frankly, rather annoying. The front part of a yearly report any financial statement that is not audited has an essential role to play in annual reports. Dissimilar from the numbers, narrative reports gives a company the opportunity to present its story in a comical way by providing a sense of a firm in a manner that cannot be achieved when using a balance sheet. Prose can fall upon a companys operating environment, strategic direction, its values, and governance structure (Sydserff & Weetman (1999), While it is not a guarantee for a narrative report to be used by the senior most investors who may probably interrogate a company, this report is extremely precious to the entire host of other stakeholders, careless(predicate) of whether they are potential shareholders, potential customers, or employees. Within this report, there should be some data that will have an impact on investment decisions. However, whilst narrative reports are viewed as a shareholder tool, it is the regulators needs that seem to be taking priority in their preparation. The critical challenge or problem in report preparation is the number of necessities placed on preparers, as well as the time and cost involved in developing the report. A portion out of effort and time can be spent working on report sections to achieve regulatory needs that are of little significance to any person, either by giving too many details or offering nothing but neutral, regulatory-approved company-talk. The nature of some