The implementation of Accounting Standards (AS) can neither be forgotten nor can it wait for long. The world, today, requires International Financial Reporting Standards (IFRS), a common accounting language for presenting financial statements. It is expected that more than 150 countries would follow IFRS by 2011. India should also set up an action plan for enjoying the benefits of IFRS convergence. IFRS is not only going to help Indian companies benchmark their performance with their global counterparts but will also help them avoid filing multiple reports for those companies, which have gone global.

International consistency in accounting and auditing standards has become the demand of the global financial markets. International Financial Reporting Standards (IFRS) is a set of Accounting Standards (AS), developed by the International Accounting Standards Board (IASB), which is becoming the global standard for the preparation of public company financial statements. With this, several countries have started adopting the IFRS, while others base their local standards on the IFRS. In Europe, public enterprises are already required to prepare their financial statements under the IFRS. Nearly 150 countries have adapted their local AS to conform to IFRS. As of this writing, the US Securities and Exchange Commission (SEC) announced proposed rules changes, which would allow certain US public companies, the option to use IFRS in 2009, as part of a proposed roadmap that may lead to a requirement that US public companies use IFRS, beginning in 2014. By 2011, it is likely that virtually every country in the world will allow or require IFRS.

The trend towards these international standards is evidently growing and is expected to result in greater comparability and disclosure of information. The transition though does not merely encompass the change of accounting procedures. Companies, especially those in the Hospitality and Tourism sectors will have to undergo extensive change and risk management to facilitate adoption. Also, there remain issues concerning the complexities of the IFRS requirements, in terms of measurement and accounting as well as the amount of information to be disclosed. Such areas of concern are yet to be fully resolved as continuous efforts are being made to resolve the conflicts and contradictions.

Ultimately, IFRS will be beneficial only after a consensus is achieved on how to apply such standards. Also, there are arguments that the IFRS is specifically suited to developed economies. As such, its implementation may be inappropriate to developing countries. Unless these critical issues are resolved, the objectives of IFRS towards a single AS may not be fully achieved. The transition and conversion to IFRS entails tremendous amount of changes to be undertaken. The adoption must eventually be able to bridge the gap between the IFRS and companies' perception as to what is relevant to their circumstances.

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