The IFRS and financial reporting a key instrument of finance of company.

The history of the IFRS implementation in Albania is interesting and original. As an ex-communist country, Romania shifted from the soviet accounting system towards a market economy model of accounting early in the ‘90s. The shift was made by adopting a French inspired model (and not an Anglo-Saxon one) due to the long and close historical, economic, political and social relationships built up between the two countries over a long period (Albu et al, 2014). Financial economics theories, when they focus on the area of investment efficiency, argue that the information asymmetry between firms and outside capital providers is one of the major drivers of suboptimal capital investment. As already known by academic literature, an important goal of financial accounting information is the reduction of adverse selection costs or moral hazard issues related to information asymmetries in order to enhance capital markets efficiency. The reduction of information asymmetry is argued that could be achieved by adopting a single set of global standards, which improves the level of comparability of financial statements, and as a result the ability of investors in identifying profitable investment opportunities. Recent literature contains a number of studies suggesting that improvements in the performance related to business investments are associated with the main positive results of implementing international financial reporting standards (hear after IFRS).This paper is a theoritcal study about IFRS. Keywords: International Financial Reporting Standards, IFRS, international accounting standards, adoption, adaption, convergence. DOI: 10.7176/RJFA/11-17-08 Publication date:September 30th 202