Abstract:
Accounting information provides past and current financial information of an economic unit
for business managers, potential investors, and other interested parties. Internally generated
accounting information helps business managers with planning, controlling, and making
decisions referred to as managerial accounting information. However, if the companies, which
have adopted International Financial Reporting Standards (IFRS) globally, cannot generate the
same information then the accounting practices need to be improved. For this purpose, the
current study was performed with the objectives of measuring relationship between
profitability and market capitalization and to analyze the challenges faced by listed firms of
various countries in association with the implementation of IFRS. For this purpose, 15
companies were selected from 5 countries including India, China, Germany, Russia and Kenya.
The secondary data regarding the correlation between profitability and market capitalization
were analyzed to calculate the correlations. The primary data regarding the managers
perception were analyzed with multiple regression method using SPSS-19 software to find out
the company related variables, investors’ related variables and government agency related
variables responsible for problems in the current adoption of IFRS.
