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Introduction Accounting is a way for communicating economic information. An economic language work differs from country to country. Accounting terminology usually expresses the adopted meaning within that particular individual culture. As contacts increase across national borders people gradually use that language outside its culture, misunderstanding will follow as the object is between the sender and receiver. This problem faces the accounting standards themselves. The process has a way to go to make financial statements readily comparable because the current status of things is that greater internationalisation of accounting system will be more or less beneficial for the profession throughout practioners and end users of published accounts. Firstly we consider the relevance of international accounting throughout the history and its need. Then proceeds to examine the benefits of implementing international standards. Finally we will conclude that there are significant obstacles to accounting harmonization and the current situation of implementing IAS by 2005. Historical Background The move towards international accounting system has been traced in 1492 when the Italian government decide to create a doubl