Irish to permit filing using US GAAP

In a surprising twist in the development of accounting standards the government in the Republic of Ireland is to introduce legislation allowing companies to file accounts using US GAAP.

The Irish Times reports the move is being made for a limited time to attract inward investment because many investors in the Republic come from the US.

The move means that three standards – IFRS, Irish and US – could all be in use at one time.

Details of which companies will be allowed to use US GAAP have so far not been published.

As an EU state IFRS is enforced for all plcs in the Republic so it remains unclear just how another set of standards will fit into the Irish regulatory framework.

The news emerged during questioning of Irish trade minister Mary Coughlan in parliament.

The move comes at a time when US and international standards are still working on converging the two sets of rules.