Accounting Practice of Unilever Bangladesh Ltd.

Abstract

Unilever Bangladesh Ltd. (UBL), a subsidiary of Unilever PLC, is one of the leading multinational companies operating in Bangladesh, with a strong presence in the fast-moving consumer goods (FMCG) sector. The company is widely recognized for its robust financial discipline, adherence to global accounting standards, and transparent reporting system, which collectively contribute to its sustainable growth and stakeholder confidence. The accounting practice of Unilever Bangladesh is guided by International Financial Reporting Standards (IFRS) and local regulatory requirements set by the Institute of Chartered Accountants of Bangladesh (ICAB) and the Bangladesh Securities and Exchange Commission (BSEC). The company maintains a highly systematic accounting framework that ensures accuracy, accountability, and compliance across all operations. Financial Reporting and Compliance – Unilever Bangladesh prepares its financial statements in accordance with IFRS and Bangladesh Financial Reporting Standards (BFRS). These statements provide a true and fair view of the company’s financial performance, enabling both internal and external stakeholders to make informed decisions. Internal Control Systems – The company implements strict internal audit and risk management processes to safeguard assets, ensure accuracy of financial records, and prevent fraudulent activities. Advanced Enterprise Resource Planning (ERP) systems, such as SAP, are used to integrate accounting and operational data across functions. Cost Management and Budgeting – UBL follows a well-structured budgeting system where cost centers are clearly defined. Standard costing, variance analysis, and activity-based costing techniques are applied to ensure efficiency and cost-effectiveness in production, marketing, and distribution. Taxation and Regulatory Adherence – The company maintains compliance with Bangladesh’s taxation framework, including corporate tax, VAT, customs duties, and transfer pricing regulations. Unilever also ensures transparency in its tax contributions, which play a significant role in the national economy. Overall, the accounting practice of Unilever Bangladesh Ltd. reflects glo