Changing of accounting treatment from Accounting Standards (AS) to International Financial Reporting Standards (IFRS) entails, not only a single adoption of one accounting principle to another, but also an enormous exercise for accountants, which requires starting from a long-term vision to the lowest level of technical skills. This article highlights the need for global convergencethe need for IFRS in India. Comparative analysis of IFRS, International Accounting Standards, and Indian GAAP have also been discussed.

Cross-border capital inflows in today's liberalized economic conditions demand fairly high standards of accounting information, in corporate financial reporting. In recent times, transparency and adequate disclosure of financial statements has enhanced decision making and companies are increasingly raising capital and attracting major investors from outside their home countries. In today's complex economic environment, the measurement and presentation of financial information is critical as far as the collection of economic resources is concerned.

Accounting depicts the clear financial image of the business, hence it should be clearly defined. The word accounting is basically defined as a system that provides numeric or quantitative information about the financial status of an entity. It depicts a clear view of the financial position. Accounting as a language of a business, communicates the financial results of an enterprise, which gives valuable information to decision makers, planners and investors for taking various important decisions. Like any other language, accounting has its own set of rules which have been developed by accounting bodies. These rules can't be absolutely rigid like those of the physical sciences. These rules accordingly, provide a reasonable degree of flexibility in line with the economic environment, social needs, legal requirements and technological developments. Rules basically specify the parameter within which, anything could be accepted in the society. Accounting rules provides the framework or boundary within which they can be adopted. Accounting rules are the backbone of accounting, without which there will be no authenticity or reliability of accounting. Accounting principles have to operate within the bounds of rationality. This could, perhaps, be considered as a genesis for setting accounting standards.

These accounting rules are called Accounting Standards. Accounting standards provide consistency to accounting. It is only on the basis of these accounting standards that the information provided by the business organizations are relied upon. It is not possible to compare the business performance in the absence of Accounting Standards. These Accounting Standards can be: Financial Reporting Statements or Statement of Standard Accounting Practices. Accounting Standards are issued by various regulatory authorities.

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