Financial Statements of any company or organization depicts the financial status of the company and the recording of financial transaction as per accounting standards issued by ICAI played a very key role in the preparation of financial statements. Accounting standards provides the detailed guidelines for the presentation of financial transactions occurred during a financial year. An international financial reporting standard defines the set guidelines for the reporting of financial transactions of the company. India is one of the rapidly growing global economies in the world and is moving towards the converging with International Financial Reporting Standards (IFRS). The Ministry of Corporate Affairs in its press release dated 25.2.2011 has notified 35 Indian Accounting Standards converged with International Financial Reporting Standards called Draft Ind AS. On 2 January 2015, the Press Information Bureau, Government of India, Ministry of Corporate Affairs (MCA) issued a note outlining the various phases in which Indian Accounting Standards converged with IFRS (Ind AS) is proposed to be implemented in India, for Companies other than Banking Companies, Insurance Companies and NBFCs.  Consequently, the companies will need to convert their accounts from Indian GAAP to IFRS. The main objective of the study is used to find out the variation and compatibility between GAAP and IFRS. The present study seeks to analyze the factors that leads to harmonization of Indian accounting standards with IFRS. The study also attempts to figure out the impact of IFRS on accounting practices in india in terms of quality of recording of transactions and financial measures. The study aim is to provide useful information to the various stakeholders like shareholders, creditors, lenders, management, investors, suppliers, competitors, researchers, regulatory bodies and society at large.