The Impact of IFRS on the Financial Performance of Companies

Abstract

The adoption of International Financial Reporting Standards (IFRS) has significantly influenced financial reporting, tax regulations, and corporate decision-making. This paper examines the impact of IFRS implementation, focusing on its effects on financial statements, profitability, and liquidity indicators. By analyzing key financial metrics before and after IFRS adoption, the study highlights both challenges and benefits encountered by companies during this transition. The findings suggest that IFRS adoption led to adjustments in financial reporting practices, influencing key indicators such as net profit margin and long-term liquidity. These changes reflect the necessity for businesses to adapt to new accounting frameworks while ensuring compliance with tax regulations. The study contributes to the understanding of IFRS implications in financial management and regulatory compliance, offering insights for practitioner. CZU: 657:006.44; JEL: H83, M40, M41