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The importance of financial reporting is beyond any doubt, and, it should be emphasized that the real necessity of this procedure is discovered in the research by Alnodel and Hussainey (2006), who stated that financial reporting is required for providing the actual and relevant information on the matters of the financial position of the bank. Originally, this information is required for the financial management team of the bank to control the financial flows and balance tendencies. Thus, the conclusions, decisions, and implementations are performed based on these reports. In the light of this consideration, it should be emphasized that the financial reporting should be performed in a clear and understandable form is the main claim for the reporting, and, as Levine (2003) stated, the reported assets of the banking system in Saudi banks are closely associated with the financial position of the banking structure in general. Moreover, the reported data is crucial for the further financial performance of the bank.
Originally, the entire reporting system is individual for any company, and the system of the banking structure is one of the most complex systems. Therefore, it should be emphasized that the general tendencies and requirements were studied by Levine (2003), and the disclosure level is regarded as one of the key aspects of the reporting system. Thus, an important innovation, which is found in several Saudi banks is the encoding of the reported information, for the reports could entail sufficient information, and it could not be deciphered by the competent if some information is intercepted.
As for the types of information, which is included in reports, and information, important for the entire reporting system, it should be stated that this information depends on the financial tendencies and requirements of the financial market, or the market, within which the banks operate. Thus, industrial banks include information on the price variations for the raw materials and manufactured products. Real estate banks consider the information on the land rent and purchase prices, the costs of the working force, materials, insurance, and the necessity to improve and empower the constructions against natural disasters.
Under the research by Trayler (2007, pp 190-191): the following statement should be emphasized:
To ensure uniformity and comparability between financial statements prepared by different companies, a set of guidelines and rules are used. Commonly referred to as Generally Accepted Accounting Principles (GAAP), these set of guidelines provide the basis in the preparation of financial statements. International Accounting Standards Board (IASB) develops International Financial Reporting Standards that have been adopted by Australia, Canada, and the European Union (for publicly quoted companies only), are under consideration in South Africa and other countries.
Thus, the issues of the international standards also should be discovered in the main paper, as these standards regulate the entire process of reporting, and simplify the international communication of the banks if reporting is adjusted through the state borders.
Finally, there is a strong necessity to emphasize that the original value of the reporting should be studied more thoroughly, and the forecasts on the matters of further development should be emphasized. Originally, few researchers have regarded these issues, nevertheless, the review of the tendencies of corporate governance may be used for making at least a simple forecast on the future tendencies in reporting.
References
Alnodel, A. and Hussainey, K. 2006. Corporate Governance Online Reporting by Saudi Companies: A Sector Specific Analysis. Riyad: King Saud University.
Levine, R. 2003. The Corporate Governance of Banks: A Concise Discussion of Concepts and Evidence, Discussion Paper No. 3,. Washington: Global Corporate Governance Forum.
Trayler, R. 2007. A survey of corporate governance in banking: characteristics of the top 100 world banks. In B. E. Gup, Corporate governance in banking: a global perspective (pp. 184-209). Cheltenham: Edward Elgar Publishing.
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