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. Hence, we require "a single global accounting", which can help to the investors in understanding financial statements better. This requires lot of preparation from company's point of view to face the challenging issues and they must be prepared to look after the transitions issues, and also ready to incur the expenditure as implementation cost.