Pressure is mounting on regulatory body Institute of Chartered Accountants of India (ICAI) to converge Indian accounting standards with those existing globally.

And while the Institute of Chartered Accountants of India has formed a task force for this integration, CNBC-TV18 reports that it's unlikely to be a smooth one.

International Financial Reporting Standards or IFRS is the buzzword in the accounting world and India is the latest to jump on to the bandwagon.

At present, all EU countries have to compulsorily adopt IFRS. The IFRS is the widely accepted accounting framework across the globe.

The ICAI, the apex accounting body in the country, does not want to be left behind and has now formed a task force for integrating Indian accounting standards with IFRS.

Dolphy D'Souza, a partner at Ernst & Young, and also a member of the ICAI Task Force on IFRS says, "There is no option but to integrate. There is just too much of pressure to sing with the world or be left out."

But there are hurdles galore. A complete transition to IFRS would require several amendments to the Companies Act. Since IFRS is based on fair or market value accounting, it would also mean a drastic change in the way Indian companies account for FCCBs and other financial instruments.

Experts suggest the switchover could have a huge impact on balance sheets of Indian companies. As such, any integration to IFRS is unlikely before 2010.

But according to sources, in the recently held SEBI committee meeting of the 'disclosures and accounting standards', SEBI officials asked ICAI to draw a road map for convergence, in the wake of increasing pressure from international market regulators for a single global accounting standard.