With the development in the globalization, the need for high quality accounting standards is ever increasing. The main objective of International Accounting Standard Board is development of a single set of accounting standards which are always in the interest of the public, are of high quality and are easily understandable. The International Accounting Standard Board aims that the accounting standards should be enforceable and accepted all over the world. Accounting being the most important part of the business is the base for reporting various financial and non financial information related to the business to it’s widely spread users like the owners, lenders, employees, auditors and many more. And with the increase in demand for accounting increases the importance of the accounting standards and the controlling board’s i.e. International Accounting Standard Board (IASB), International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP) (Dye, 2001, p 257-271). The convergence of the International Financial Reporting Standard and the Generally Accepted Accounting Principles has led to integration in global accounting.