IFRS for Companies: Growth Opportunity or a Financial Burden?

Abstract

In a dynamic and competitive business environment, companies are expanding beyond national borders, making it essential to adapt to international economic and legislative regulations through standardized and transparent accounting practices. International Financial Reporting Standards (IFRS) serve as a global benchmark to improve the comparability, reliability, and quality of financial reports. This paper analyses the impact of adopting IFRS, highlighting both growth opportunities, such as enhanced transparency and access to capital markets, and challenges, particularly for small and medium-sized enterprises (SMEs) due to implementation costs and complexity. The study also examines legal compliance obligations and the global adoption of IFRS, providing insights into its economic implications for businesses. CZU: 657:006.44(478+100); JEL: M41, M48, G32, F65