This paper discussed the Evolution, Implementation and Effects of International Accounting Standards in the Philippines. Rules and standards governing the accountancy profession in the Philippines is under R.A 9298. Philippines Accounting Standards and Practices were based on the established Generally Accepted Accounting Practices initiated by the United States. In 2005, country decided to shift to European accounting standards better known as International Financial Reporting Standards. The main reason in shifting to the European accounting standards was the inaccurate financial information associated in the Asian crisis, adversely affected entities’ business decisions. Implementation of the new accounting standards emphasizes accuracy, transparency in financial reporting. This paper will be useful to underdeveloped and developing countries that are challenged to adapt financial accounting standards, therefore assisting them in analyzing financial statements for better business decisions. Complex market and financial environment can be easier and transparent. Cost effective financial statements will help the m to more accurate comprehensive decisions affecting the countries developing economic growth.