This paper explores the idea of globalization in economy in general and its role in that process in order to develop new directions for the accounting concepts. Globalization is a reality in today’s world. As globalization intensifies the need for complex financial information becomes obvious. Expanding capital markets require analysis of financial statement prepared under diverging accounting standards. Investors believe that the lack of common financial statement increases the risk of an investment and affects the free flow of world capital. A single set of accounting standards would bring great benefits to the investors and would reduce the cost of accessing capital markets around the world. The convergence of accounting standards would assure enhanced comparability, greater reporting transparency, more efficient capital markets.

globalization, convergence, fair value, international accounting