,1|P a g e
9I 9I 9I 9I
ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION BY N 9I 9I 9I 9I 9I 9I 9I 9I
ATHALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL TEST
9I 9I 9I 9I 9I 9I 9I 9I 9I
BANK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLETE UPD
9I 9I 9I 9I 9I 9I 9I 9I
ATE 2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
9I 9I 9I 9I 9I 9I
Chapter 01: Introduction to Advanced Financial Accounting
9I 9 I 9I 9I 9I 9I
1.1 Describe the accounting standards used in Canada and how they apply to 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
different reporting entities. 9I 9I
1) A private company in Canada that is closely held, has no debt, and wants to
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
simplify the accounting process is most likely to report under which part of the C
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
PA Canada Handbook?
9I 9I
A) Part II — Accounting Standards for Private Enterprises (ASPE)
9I 9I 9I 9I 9I 9I 9I 9I
B) Part IV — Accounting Standards for Pensions
9I 9I 9I 9I 9I 9I
C) Part I — International Financial Reporting Standards (IFRS)
9I 9I 9I 9I 9I 9I 9I
D) Part III — Accounting Standards for Not-for-Profit Organizations
9I 9I 9I 9I 9I 9I 9I
ANSWER_ A 9I
Diff: 1 9I Type: MC 9I
Taxonomy Category: Understanding 9I 9 I
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how t
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
hey apply to different reporting entities.
9I 9I 9I 9I 9I
2) In Canada, a private company has the choice to report under International Fi
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
nancial Reporting Standards (IFRS) or Accounting Standards for Private Enterpris
9I 9I 9I 9I 9I 9I 9I 9I 9I
es (ASPE). Describe why the CPA Canada Handbook provides the option for privat
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
e enterprises?
9I
,2|P a g e 9I 9I 9I 9I
ANSWER_ IFRS is meant to create consistency and comparability in international
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
markets. One of the limitations of IFRS is the complexity of reporting for equity in
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
vestments that are meant to provide information to shareholders for decision-
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
making purposes. Many private companies are held by a small group of sharehold
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
ers who are often involved in the running of the business or have access to that info
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
rmation. As a result, the cost of applying more complex accounting policies outwei
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
ghs the benefit of the information provided to this closely held group of shareholde
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
rs. To address this, the Accounting
9I 9I 9I 9I 9I
Standards Board developed the Accounting Standards for Private Enterprises to me
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
et the needs of private
9I 9I 9I 9I
enterprises. Private enterprises have the option to adopt IFRS or ASPE depending o
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
n the needs of the financial statement users.
9I 9I 9I 9I 9I 9I 9I
Diff: 2 9I Type: ES 9I
Taxonomy Category: Understanding 9I 9 I
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how t
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
hey apply to different reporting entities.
9I 9I 9I 9I 9I
3) What are the four parts of the CPA Canada Handbook — 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
Accounting and which entities are they applicable to?
9I 9I 9I 9I 9I 9I 9I 9I
ANSWER_ The four parts are: 9 I 9I 9I 9I
• Part I — International Financial Reporting Standards (IFRS) —
9I 9I 9I 9I 9I 9I 9I 9I
applicable to publicly accountable, private, or not-for-profit entities.
9I 9I 9I 9I 9I 9I 9I 9I
• Part II — Accounting Standards for Private Enterprises (ASPE) —
9I 9I 9I 9I 9I 9I 9I 9I 9I
applicable to private entities.
9I 9I 9I 9I
• Part III — Accounting Standards for Not-for-Profit Organizations —
9I 9I 9I 9I 9I 9I 9I 9I
applicable to not-for-profit entities.
9I 9I 9I 9I
• Part IV — Accounting Standards for Pension Plans — 9I 9I 9I 9I 9I 9I 9I 9I
applicable to pension plans.
9I 9I 9I 9I
, 3|P a g e
9I 9I 9I 9I
Diff: 1 9I Type: ES 9I
Taxonomy Category: Remembering 9I 9 I
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how t
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
hey apply to different reporting entities.
9I 9I 9I 9I 9I
1.2 Discuss the conceptual framework for financial reporting and the general
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
purpose of financial reporting. 9I 9I 9I
1) In 2011, Canada adopted International Financial Reporting Standards (IFRS) for
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
publicly accountable enterprises. Explain the rationale for adopting IFRS in Canada
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
.
ANSWER_ As the global economy expanded, the Accounting Standards Board (A
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
cSB) chose to adopt IFRS in Canada to improve consistency and comparability in th
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
e international capital markets.
9I 9I 9I
Diff: 1 9I Type: ES 9I
Taxonomy Category: Understanding 9I 9 I
Learning Outcome: 1.2 Discuss the conceptual framework for financial reporting an
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
d the general purpose of financial reporting.
9I 9I 9I 9I 9I 9I
1.3 Define and identify strategic and non- 9I 9I 9I 9I 9I
strategic intercorporate investments made by reporting entities.
9I 9I 9I 9I 9I 9I
1) Laliberte Products Ltd. (LPL), a public company, made several equity 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
investments in the current year. 9I 9I 9I 9I
Which of the following investments would most likely be classified as an associate i
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
n LPL's financial statements?
9I 9I 9I
9I 9I 9I 9I
ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION BY N 9I 9I 9I 9I 9I 9I 9I 9I
ATHALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL TEST
9I 9I 9I 9I 9I 9I 9I 9I 9I
BANK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLETE UPD
9I 9I 9I 9I 9I 9I 9I 9I
ATE 2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
9I 9I 9I 9I 9I 9I
Chapter 01: Introduction to Advanced Financial Accounting
9I 9 I 9I 9I 9I 9I
1.1 Describe the accounting standards used in Canada and how they apply to 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
different reporting entities. 9I 9I
1) A private company in Canada that is closely held, has no debt, and wants to
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
simplify the accounting process is most likely to report under which part of the C
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
PA Canada Handbook?
9I 9I
A) Part II — Accounting Standards for Private Enterprises (ASPE)
9I 9I 9I 9I 9I 9I 9I 9I
B) Part IV — Accounting Standards for Pensions
9I 9I 9I 9I 9I 9I
C) Part I — International Financial Reporting Standards (IFRS)
9I 9I 9I 9I 9I 9I 9I
D) Part III — Accounting Standards for Not-for-Profit Organizations
9I 9I 9I 9I 9I 9I 9I
ANSWER_ A 9I
Diff: 1 9I Type: MC 9I
Taxonomy Category: Understanding 9I 9 I
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how t
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
hey apply to different reporting entities.
9I 9I 9I 9I 9I
2) In Canada, a private company has the choice to report under International Fi
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
nancial Reporting Standards (IFRS) or Accounting Standards for Private Enterpris
9I 9I 9I 9I 9I 9I 9I 9I 9I
es (ASPE). Describe why the CPA Canada Handbook provides the option for privat
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
e enterprises?
9I
,2|P a g e 9I 9I 9I 9I
ANSWER_ IFRS is meant to create consistency and comparability in international
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
markets. One of the limitations of IFRS is the complexity of reporting for equity in
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
vestments that are meant to provide information to shareholders for decision-
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
making purposes. Many private companies are held by a small group of sharehold
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
ers who are often involved in the running of the business or have access to that info
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
rmation. As a result, the cost of applying more complex accounting policies outwei
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
ghs the benefit of the information provided to this closely held group of shareholde
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
rs. To address this, the Accounting
9I 9I 9I 9I 9I
Standards Board developed the Accounting Standards for Private Enterprises to me
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
et the needs of private
9I 9I 9I 9I
enterprises. Private enterprises have the option to adopt IFRS or ASPE depending o
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
n the needs of the financial statement users.
9I 9I 9I 9I 9I 9I 9I
Diff: 2 9I Type: ES 9I
Taxonomy Category: Understanding 9I 9 I
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how t
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
hey apply to different reporting entities.
9I 9I 9I 9I 9I
3) What are the four parts of the CPA Canada Handbook — 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
Accounting and which entities are they applicable to?
9I 9I 9I 9I 9I 9I 9I 9I
ANSWER_ The four parts are: 9 I 9I 9I 9I
• Part I — International Financial Reporting Standards (IFRS) —
9I 9I 9I 9I 9I 9I 9I 9I
applicable to publicly accountable, private, or not-for-profit entities.
9I 9I 9I 9I 9I 9I 9I 9I
• Part II — Accounting Standards for Private Enterprises (ASPE) —
9I 9I 9I 9I 9I 9I 9I 9I 9I
applicable to private entities.
9I 9I 9I 9I
• Part III — Accounting Standards for Not-for-Profit Organizations —
9I 9I 9I 9I 9I 9I 9I 9I
applicable to not-for-profit entities.
9I 9I 9I 9I
• Part IV — Accounting Standards for Pension Plans — 9I 9I 9I 9I 9I 9I 9I 9I
applicable to pension plans.
9I 9I 9I 9I
, 3|P a g e
9I 9I 9I 9I
Diff: 1 9I Type: ES 9I
Taxonomy Category: Remembering 9I 9 I
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how t
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
hey apply to different reporting entities.
9I 9I 9I 9I 9I
1.2 Discuss the conceptual framework for financial reporting and the general
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
purpose of financial reporting. 9I 9I 9I
1) In 2011, Canada adopted International Financial Reporting Standards (IFRS) for
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
publicly accountable enterprises. Explain the rationale for adopting IFRS in Canada
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
.
ANSWER_ As the global economy expanded, the Accounting Standards Board (A
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
cSB) chose to adopt IFRS in Canada to improve consistency and comparability in th
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
e international capital markets.
9I 9I 9I
Diff: 1 9I Type: ES 9I
Taxonomy Category: Understanding 9I 9 I
Learning Outcome: 1.2 Discuss the conceptual framework for financial reporting an
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
d the general purpose of financial reporting.
9I 9I 9I 9I 9I 9I
1.3 Define and identify strategic and non- 9I 9I 9I 9I 9I
strategic intercorporate investments made by reporting entities.
9I 9I 9I 9I 9I 9I
1) Laliberte Products Ltd. (LPL), a public company, made several equity 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
investments in the current year. 9I 9I 9I 9I
Which of the following investments would most likely be classified as an associate i
9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I 9I
n LPL's financial statements?
9I 9I 9I
