US body begins probe into Elan accounting

The US Securities and Exchange Commission has launched an investigation into alleged ‘Enron-style’ accounting practices in the Irish pharmaceutical firm Elan.

The move follows a report in the Wall Street Journal two weeks ago which accused the company of registering its loss-making enterprises in the accounts of myriad partnerships rather than in Elan’s own accounts.

Elan strongly rejected the report, insisting that its accounting practices conformed to internationally accepted standards.

Elan, Ireland’s third-largest firm, has seen its share price tumble since the report was published. It remains to be seen what effect the SEC investigation will have on share prices in Dublin, London and New York today.