Indonesian Islamic financial institutions (IIFIs) are in a cross roads when it comes to financial reporting standards. As the industry is moving towards globalized economy, it is tempted to adopt the generally accepted international standards vis-à-vis Islamic compliant financial reporting standards. The major concern with the former, it is not complied with Islamic values, and therefore, IIFIs are in predicament which one is the most viable financial reporting standard. Thus, this paper aims to explore what are the influences towards adopting international financial reporting in Indonesia and how they impact the IIFIs. From the interactions of the actors associate with the process of standardization, the study suggests that political and economic imperialist motive exists in financial reporting standardization in Indonesia. As the IIFIs are established to demonstrate their accountability for both shareholders and society, therefore, not only their operation must uphold the mutuality concept but also their reporting mechanism.