Challenges in implementing ifrs in large enterprises: a case study of Kosovo

The rapid globalization of economic activities and the integration of financial markets on a global scale have created an urgent need to harmonize accounting standards. One of the most significant manifestations of this harmonization trend is the global adoption of International Financial Reporting Standards (IFRS), reflecting the increasing internationalization of business operations. Harmonizing financial reporting practices aims to provide a consistent and transparent framework, enhancing comparability and reliability across borders. However, achieving such standardization requires the imposition of rigorous and uniformly applied rules, posing significant challenges for enterprises in different regions. This research focuses on identifying the specific difficulties associated with IFRS implementation in large enterprises, particularly the obstacles these companies face when adopting these standards. The study employs an inductive methodology, synthesizing findings from multiple studies conducted in diverse countries, highlighting the impact, application challenges, and barriers associated with IFRS adoption. Primary data for this research were gathered through quantitative questionnaires administered to 96 large enterprises in Kosovo, providing a localized perspective on IFRS implementation challenges. The results of the Friedman test reveal a significant discrepancy between the degree of IFRS implementation among large enterprises in Kosovo and key factors such as ambiguity in the standards, lack of professional expertise, insufficient training, inadequate educational support, and the high costs associated with compliance. These findings underscore the need for targeted strategies, including enhanced professional training and supportive regulatory frameworks, to facilitate effective IFRS adoption in transitional economies like Kosovo. This study offers valuable insights for policymakers and practitioners seeking to address these challenges and foster a more cohesive international accounting environment.