IFRS – a Common Language for Global Business

Abstract

International Financial Reporting Standards (IFRS) are globally recognized accounting framework that enhances financial transparency and comparability across countries. Serving as a common language for business, IFRS standardizes financial reporting across borders, ensuring credibility and facilitating cross-border communication. This research explores the significance of IFRS in the context of economic globalization and analyzes its impact on financial markets and investment decisions. By reviewing relevant literature, examining methodologies employes in the adoption of IFRS, and conducting legislative and comparative analyzes, the study highlights both the benefits, such as reduced capital costs and enhanced investor confidence, and the challenges, such as local regulatory discrepancies and the need for ongoing professional training. The findings underscore the necessity for continous legislative updates and comprehensive training programs to achieve effective convergence of accounting standards worldwide. CZU: 657:006.44(100); JEL: M41, M48