This paper strives to explore and address one of the possible solutions for globalizing accounting standards that meet Japanese social and economic values. This goes without saying that accounting systems are subject to forces considered isomorphic with the global system according to authorities such as the IASB and the FASB. The accounting system is also inclined to be isomorphic with the global system due to the abstract and vague objectives of value relevance and reliability (or faithful representation) with financial reporting. We understand that a great amount of enforcement exists for the isomorphism of institutionalization in the social phenomenon, therefore I focus on the process of creating a sense of legitimacy for the IFRSs. I focus specifically on the process of structuring and institutionalizing to expand the field of IFRSs and thereby creating legitimacy. I also focus on how the FASB has been working on establishing restraints for IFRS expansion after the issuance of the “Memorandum and Understanding ‘The Norwalk Agreement’.” Furthermore, this paper discusses the prospects and challenges for the globalization of accounting standards in Japan. One possible solution would be to disclose reconciliation accounts that show the main difference between the IFRSs and the Japanese GAAP. The summative disclosure of significant adjustments against the net income and shareholder’s equity will be required if the IFRSs has been fully applied in lieu of the Japanese GAAP.