When half words are not enough: analysis of the readability of explanatory notes for the North and Northeast regions

Abstract

Explanatory notes are responsible for advancing the understanding of government performance, particularly those that refer to relevant information that should be made public. Therefore, this study seeks to assess the readability of the explanatory notes (NBs) contained in the financial statements of the states of the North and Northeast of Brazil. The methodological framework used is qualitative and quantitative, descriptive, exploratory, and documentary in nature. The sample included states from both regions, using data published on official websites from 2014 to 2023. To calculate the readability level, the Flesch index was adopted, which classifies the information disclosed into seven stages (1-very difficult, 2-difficult, 3-reasonable, 4-standard, 5-reasonably easy, 6-easy, and 7-very easy). The study revealed a situation considered worrying, although completely unknown: disclosure overload (excess of useless information); discontinuity in the preparation of NEs, even after the implementation of IPSAS in the country; disparity in results between regions, with lower readability than in the Northern states, and a general level of readability classified between difficult and reasonable (levels 3 and 4). As a contribution, the study revealed the situation in which some Brazilian states find themselves regarding the disclosure of public financial information. It found that the losses go beyond a simple lack of transparency by government entities toward their principals (society in general) but also include serious deficiencies in the public accountability process.