The future of narrative disclosure from the perspective of strategic management accounting with a prospective study.

The separation of ownership from management leads to many problems of the agency, in particular the problem of asymmetry of information, as a result of managers owning information that may not be available to the shareholders of the company and all related parties. This problem is exacerbated by the lack of financial reports to provide the information needed by the users of these reports, because they focus on financial information that is concerned with the operations and events that took place in the past, and neglect information related to the company's strategy and business model, and lack of interest in disclosure of non-financial information. This is due to the importance of this information to decision makers related to the company. Therefore, many researchers and practitioners of the accounting profession are currently emphasizing the need for companies to disclose their strategy and non-financial items that appear in the narrative reports (outside financial statements) (Pricewaterhousecoopers, 2007; BIS, 2010; Pricewaterhousecoopers, 2010). To explain and explain the internal and external events surrounding the company. These reports are concerned with the disclosure of the strategy and risks followed by the company, in addition to future strategies, especially in relation to the extent of the company's achievement of sustainable development and which helps stakeholders to assess their performance. So the strategic report emerged as one of the narrative reports that could help to develop the future of narrative disclosure. The strategic report is concerned with clarifying the environment surrounding the company and its strategy and the relationship of the business model to the company's strategy. The report also illustrates the relationship of the company's performance to its strategy, particularly when incorporating sustainable development and risk management issues into its strategy. The strategic report also provides information on the incentives and rewards granted to the Board of Directors and their relationship to the company's performance and strategy. In order for the management of the company to disclose such information, which helps to meet the wishes of all stakeholders, it is necessary to develop the company's strategy to meet the requirements and desires of the stakeholders, which helps to unite all individuals in the company and strive to implement the strategy that seeks to achieve. This will only be done through the existence of management accounting tools and a management accounting information system that supports these reports. Therefore, the role of management accounting tools and management accountant in supporting these reports is evident from the information contained within it, which helps to converge financial and administrative accounting.