: US GAAP (Generally Accepted Accounting Principle) is the new mantra for Accounting and Corporate Finance
Professionals world over . Globalisation and access to Global Capital and securities market has enhanced the need to assimilate
the principles of US GAAP into national Accounting Standards. To get listed on NYSE or NASDAQ and float GDR , an Indian company either needs to publish accounts under
US GAAP or expressly publish the reconciliation of its Financial Results with US
GAAP. Further many foreign companies whose shares are listed on US Stock Exchanges, require that their Indian Subsidiaries
or Associates, should prepare separate sets of Accounts under US GAAP for ease of consolidation. Some of Indian Companies
who have launched GDR/ ADR are Bajaj Auto, Dr Reddy’s Lab, HDFC Bank, Hindalco, ICICI Bank, Infosys, ITC, L&T, MTNL,
Ranbaxy Labs, Reliance, Satyam Computers, SBI, VSNL and WIRPO and required to follow US GAAP Accounting/reconciliation.