Global Accounting Practices - A Case Study of Dr.Reddy's Laboratories Limited

Abstract

The 21st century is also called by some as a global village, where countries across the world are connected for business operations across vast distances. India is no exception, and it is evident, since many Indian companies are listed in US and UK financial markets. This listing results in the expansion of global business operations to and creates value. Some renowned Indian companies from information technology, pharmaceuticals, auto industry and banking sector are listed in global capital markets to attract investments from Foreign Institutional Investors. This is also to provide goods and services to the customers across the globe. Such companies strictly follow statutory regulatory requirements of the respective nations. It is done by adopting global accounting standards to disclose financial reports to the stakeholders. The set of companies performing businesses in domestic and foreign markets, are incurring huge expenditure, and are also taking a lot of time for preparing ‘accounting books’ using different GAAPs (Generally Accepted Accounting Principles) to different investors i.e. local & global. These differences in accounting procedures confuse the investors for a proper understanding of the language of the business.