Uncertainty Disclosure in Financial Reporting: Contemporary Practices and Emerging Challenges

This study aims to review the literature to explore recent developments in uncertainty disclosure practices. This aims to contribute to improving the understanding of uncertainty and providing insights to relevant authorities and users of financial reports on uncertainty risks to enhance the transparency and reliability of financial reporting. The study analyzed the literature in the context of contemporary practices and regulatory challenges associated with uncertainty in financial reporting. The study followed a narrative literature review methodology for the period from 2019 to 2025. Scientific databases were used to select more than 35 recent studies, and literature focusing on research areas outside the scope of the study was excluded. The study reached several conclusions, the most important of which is the existence of a gap between regulatory and actual uncertainty disclosure requirements. Furthermore, institutional and cultural factors significantly impact the quality of disclosure, which impacts the transparency of financial reports from the perspective of stakeholders. The study recommended the importance of intensifying research in this area, especially in emerging markets. Emerging financial and non-financial risks also require updating uncertainty disclosure standards and emphasizing adherence to quantitative disclosures of these risks to improve the quality of uncertainty disclosure and achieve the integrity and transparency of financial reporting.