2 verifications about Ireland Ireland ×
“Consolidating an Ireland operation with a U.S. parent requires translating euro-denominated accounting records into U.S. dollars using appropriate currency translation methods.”
Consolidation with a U.S. parent generally requires the Ireland operation’s amounts to be expressed in U.S. dollars under ASC 830 or IAS 21. The exact method depends on functional currency: euro-functional statements are translated, while euro books for a USD-functional operation are remeasured. That technical distinction does not materially change the practical takeaway that euro-denominated records must be converted for consolidation.
“Differences between IFRS and U.S. GAAP in the recognition and measurement of assets, liabilities, revenues, and expenses can make consolidating an Ireland-based operation with a U.S.-based parent company more difficult.”
Authoritative accounting guidance supports the point. IFRS and U.S. GAAP differ in several recognition and measurement areas, and a U.S.-based parent consolidating an Ireland-based operation may need conversion and reconciliation adjustments to put both entities on one accounting basis. SEC acceptance of IFRS for some issuer filings does not remove that consolidation burden for a U.S.-GAAP parent.