The increasing importance of the globalization process is identified by the growth of international business relationships. It creates the need for comparable information about the financial situation of a company. As a response to this process, the international financial reporting standards (IFRS) were created. The aim of this master thesis is to answer the question if IFRS are able to measure the performance of the management.The introduction is followed by a definition of the term performance. Afterwards, the suitability of the shareholder value for measuring the management performance is analysed. The following chapter deals with the IFRS annual statement itself and its suitability for performance measurement. Afterwards, selected accounting standards and valuation regulations of Austrian and German national accounting standards on the one side and of IFRS on the other side are examined, with regard to their effect on the performance of the management. Moreover, the suitability of residual income and of key performance indicators based on residual income, such as Economic Value Added (EVA) and Cash Value Added (CVA), is discussed.The usage of data of the annual statement includes different advantages and disadvantages. A basic problem seems to be that an accounting system of high quality does not necessarily lead to high quality accounting information. Quality defects arise because of unsuitable incentives or political influence. One advantage of IFRS seems to be the higher quality in order to control the action of the management. This improved quality is raised by more detailed information, which is provided for the users of the annual financial statement. The marginal influence of the principle of prudence and the usage of the Fair Value instead of historical costs is also an important issue for measuring management performance based on IFRS.