The significant effects are time, distance and comparability of financial reporting. Financial statements or capital markets across national borders may be affected by aspects of time and distance. Therefore, accounting practices should be applied to the development of new information technologies to address distance aspects and improve the problem at different times when working across national borders. Furthermore, methods in accounting practices have changed from the traditional approach to the active method. Furthermore, the globalization of accounting standards has established itself as a common accounting language effective at the national level