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Globalization is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies. Globalization is a trend characterized by denationalization (national boundaries becoming less relevant) and is different from internationalization (entities cooperating across national boundaries).
(Wild 6.)


Globalization can have a huge effect on people, a country and products. Even the way future accountants are taught and what they are taught could be affected by globalization. In this article, I am going to talk about some basic accounting techniques and discuss whether the overall accounting education is in danger.

The United States abides by one set of accounting rules called, GAAP. GAAP stands for Generally Accepted Accounting Principles. GAAP sets the standards for how a company must complete their financial statements. The rules and procedures are established and run by the Financial Accounting Standards Board, as well as the American Institute of Certified Public Accountants is available. Every company in the United States is required to follow GAAP. These rules and procedures are in place because it makes it easier to analyze and compare financial information between companies. But not every country in the rest of the world follows GAAP.

Accounting majors will spend a lot of their time in college studying the ins and outs of GAAP. In reality, they should be spending a lot more time on International Financial Reporting Standards (IFRS). IFRS are issued by the International Accounting Standards Board. One of their main goals with IFRS is make the ability to compare financial statements from country to country easier. (International Financial Reporting Standards) The problem with just
teaching GAAP is that only the United States follows the standards. IFRS is taught
to many other people in many other countries. This makes it very difficult for countries to share and interpret each others financial statements. With the help of globalization, the United States has come to realize that maybe just teaching GAAP is not the best.


In my opinion, globalization on accounting education will open up many more opportunities. For example, accountants will be able to travel to large developing businesses in countries such as Asia and Europe to work. Some drawbacks of switching accounting techniques is that current accounting professors will need to learn IFRS so they are able to teach their student. There is also going to be a new demand for textbooks that contain instruction and problems. (The Impact of Globalization on Accounting Education) Hood says, "the state of accounting education is excellent." It will definitely be interesting to see what the future holds for the United States, and what will happen when we start incorporating IFRS in to our accounting education.