Advanced Financial Accounting in Canada 1st Edition By Nathalie Johnstone, Kristie Dewald, Cheryl Wilson (Test Bank Latest Edition 2023-24, Grade A+, 100%

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ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION BY y6 y6 y6 y6 y6 y6 y6 y6



NATHALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL TE y6 y6 y6 y6 y6 y6 y6 y6



ST BANK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLETE
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UPDATE 2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
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Chapter 01: Introduction to Advanced Financial Accounting
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1.1 Describe the accounting standards used in Canada and how they apply to
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different reporting entities.
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1) A private company in Canada that is closely held, has no debt, and wants t
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o simplify the accounting process is most likely to report under which part of th
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e CPA Canada Handbook?
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A) Part II — Accounting Standards for Private Enterprises (ASPE)
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B) Part IV — Accounting Standards for Pensions
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C) Part I — International Financial Reporting Standards (IFRS)
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D) Part III — Accounting Standards for Not-for-Profit Organizations
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ANSWER_ A y6




Diff: 1 y6 Type: MC y6




Taxonomy Category: Understanding y6 y 6




Learning Outcome: 1.1 Describe the accounting standards used in Canada and how
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they apply to different reporting entities.
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2) In Canada, a private company has the choice to report under International
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Financial Reporting Standards (IFRS) or Accounting Standards for Private Enterp
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rises (ASPE). Describe why the CPA Canada Handbook provides the option for pr
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ivate enterprises? y6

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ANSWER_ IFRS is meant to create consistency and comparability in internationa
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l markets. One of the limitations of IFRS is the complexity of reporting for equity
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investments that are meant to provide information to shareholders for decision-
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making purposes. Many private companies are held by a small group of sharehol
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ders who are often involved in the running of the business or have access to that i
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nformation. As a result, the cost of applying more complex accounting policies o
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utweighs the benefit of the information provided to this closely held group of sha
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reholders. To address this, the Accounting y6 y6 y6 y6 y6




Standards Board developed the Accounting Standards for Private Enterprises to m
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eet the needs of private
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enterprises. Private enterprises have the option to adopt IFRS or ASPE depending
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on the needs of the financial statement users.
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Diff: 2 y6 Type: ES y6




Taxonomy Category: Understanding y6 y 6




Learning Outcome: 1.1 Describe the accounting standards used in Canada and how
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they apply to different reporting entities.
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3) What are the four parts of the CPA Canada Handbook —
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Accounting and which entities are they applicable to?
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ANSWER_ The four parts are: y 6 y6 y6 y6




• Part I — International Financial Reporting Standards (IFRS) —
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applicable to publicly accountable, private, or not-for-profit entities.
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• Part II — y6 y6



Accounting Standards for Private Enterprises (ASPE) —
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applicable to private entities.
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• Part III — Accounting Standards for Not-for-Profit Organizations —
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applicable to not-for-profit entities.
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• Part IV — Accounting Standards for Pension Plans —
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applicable to pension plans.
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