The application of the International Financial Reporting Standards (IFRS) has been binding for all enterprises whose securities are admitted to trading on a regulated market (‘listed’) in Europe since 1 January 2005. The preparation of the annual financial statements or group financial statements can also present a competitive advantage even for enterprises not legally required to apply IFRS. The adoption of international uniform accounting principles leads to more transparency for investors and stakeholders, as they facilitate enhancing the significance and comparability of the financial statements. The IFRS are accepted internationally, companies applying them are enabled to gain easier access to the international capital markets. In the end, the cost of capital will decrease, which in turn means a competitive advantage.