The Impact of International Financial Reporting Standards IRFSs in Return on Investment of Selected Firms

Research focus on the International Financial Reposting Standard IFRSs adopt would impact on the financial performance of the selected firms. The study contributed the industry belong to capital goods which have high net worth and it’s directly impact return on investment of the firms. And meanwhile also impact market value of firms. Three separate measures are used: variability of net income, variability of return on investment to that of book total assets, correlation between all independents variables. The data samples are from the capital market line and money control, they span a period of six years, 2008 to 2010 pre-execution of IFRSs and 2011 to 13 post execution variables. Researcher concludes that there was an enhancement in the quality of reported earnings subsequent to adoption of IFRSs.