International Financial Reporting Standards are a special set of verified accounting standards that in nature serve as a platform for the preparation of verifiable comparative accounting information presented in the form of basic financial statements. The issue of the success of the application of IFRS is conditioned by experience and knowledge, and is also generated by the legally binding basis of clearly classified business entities. Although the globalization of the world has laid the foundations for the need for harmonization in accounting due to the fact that more and more small businesses are internationalizing, the outcome of the logic of reality is that the results of intended harmonization in accounting are not always in line. The question of the practical application of the named standards is all the more difficult if the frequency of changes in these accounting standards is taken into account. Also, the conducted analysis in the paper indicates that IFRS are not fully in line with the objectives of Directive 2013/34 / EU, due to which the European Commission does not accept their uniform application in the EU market. The new Croatian Accounting Act contains significant changes in order to meet the objectives of the said Directive. The application of International Financial Reporting Standards as an extremely complex, professional and demanding matter requires certain knowledge, experience, time, but also a legal obligation for certain business entities in the Republic of Croatia. The processes of globalization and harmonization in the field of accounting have significantly contributed to the frequent changes of these standards, which further complicates the already complex and demanding practical application by accountants. The paper identifies and analyzes the problems of application of IFRS in companies in the Republic of Croatia and points out possible improvements to the observed current situation. The areas of improvement that the incorporation of Directive 2013/34 / EU into national accounting legislation brings are related to better regulation of the accounting profession, reporting requirements and the process of reporting to entrepreneurs, and the improvement of electronic business.