The evolution of accounting framework in various countries is based on several indigenous causative factors and has led to interesting and significant differences in accounting practices. As traditions, economic transition, new economic development models, changes in expectations of users of financial statements, need for sustaining investor confidence, inflation, legal requirements etc. undergo substantial changes and reforms from decade to decade, so do the accounting framework and standards. Continuous efforts to improve quality of accounting standards will reduce uncertainty, increase overall efficiency, sustain high levels of investor confidence and will reflect superior intrinsic financial strength of the organization. Accounting standards, structure and practices besides having accounting consequences can also significantly impact business results. Accounting system followed by IR provides for a reasonably detailed break-down of operating costs from a functional viewpoint. However, the emerging business needs require certain changes in the way accounting information was captured, grouped and maintained so far.