This harmonisation is needed due to the globalization of 
business and services and increase in FII, FDI and 
Borrowings.  

Accounting standards confirm to applicable laws, customs, 
usages and business environment. So there is no universally 
acceptable set of standards. 

Accounting standards are different for commercial 
undertakings and the government. For example, an auditor or 
Accountant in India is faced with the different standards 
like AS issued by ICAI, IFRS, US GAAPs, IPSAS issued by 
IFAC and GASAB Standards. 
The whole idea of accounting standards is centered on 
Harmonisation of accounting policies and practices followed 
by business to standardise the diverse accounting practices 
followed for many aspects of accounting. The Harmonisation 
of accounting standards is needed at global level.