As integration of markets is increasing, companies around the world are in need of accomplishing there business in a manner to coincide with the international corporate activities. A higher level of comparability and quality of financial statements required because of an increased international audience and their unfamiliarity with different national domestic accounting standards that the financial statements are produced under. If the investors and stakeholders are not able to obtain an adequate and transparent view on the selected companies, extra cost in form of lost potential capital or investment opportunity will occure as a result of confidence in the companies. Harmonization of accounting standards has become a highly demanded issue of discussion and debate among accounting professionals around the globe. The problem deals with the need of harmonization of accounting standards in practices. The basic aim is to depict and analyse the developments in Indian accounting standards and the need for the adaptation of IFRSs. Keywords: IFRS, Financial statements, stakeholders, accounting standards