Idea: Restricting financial accounting on issues related to decision-usefulness and perceiving corporate reporting as a product of accounting choices from an agency theory perspective constrains other dimensions of reality. While positive accounting methodology may not be scientific under various accounts for science, it has contributed to accounting methodologically.
Rochester school of accountancy's positive accounting research has properly identified the assumed imaginary need of the US market. Motivation: This study revisits the debate of the validity of Rochester school of accountancy's positive methodology. Research Question: Whether accounting research has been in a better status after the domination of Rochester School of Accountancy’s Positive Accounting Methodology. It is a step toward realization aspects of Saudi Vision 2030 concerning with, for instance, protecting environment and other related matters. However, the average disclosure level is without substantial improvement since 20, as previously reported The Capital Market Authority (CMA) is recommended to mandate nonfinancial information disclosure. The mean for the entire sample of the ratios of disclosed nonfinancial items is 30.35%. The corporations in the energy sector scored, on average, 37.65%. The findings also show that nonfinancial disclosure of the selected sectors on average range between 28.85% for the corporations in the material sector to 39.22% for the corporations in utilities sector.
In contrast, environmental, customers, and fighting corruption have a low level. Results reveal that employees, community, and products and services information have a moderate disclosure level. All corporations in three sectors-energy, utilities, and materials, which collectively represents 85.51% of the Saudi market capitalization-encompass the sample. In examining the contents of annual and board reports for 50 listed corporations, a coding sheet was developed by combining the two coding sheets of Boshnak and the European Directive 2014/95/EU. This study empirically assesses the disclosure of nonfinancial information in corporate reporting.
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