ADVANCED ACCOUNTING IN CANADA, 1 !m !m !m !m
ST CANADIAN EDITION BY NATHALIE JO
!m !m !m !m !m
HNSTONE AND KRISTIE DEWALD TEST B
!m !m !m ! m !m
ANK|\ FULL TEST BANK WITH ALL CHAPT
!m !m !m !m !m !m
ERS INCLUDED|| LATEST AND COMPLETE
!m !m !m !m !m
UPDATE 2025 WITH VERIFIED SOLUTIONS
!m !m !m !m
|| GUARANTEED A+ !m !m
,1| P a g e
!m !m !m !m
ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION BY !m !m !m !m !m !m !m !m
NATHALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL TE
!m !m !m !m !m !m !m !m
ST BANK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLETE
!m !m !m !m !m !m !m !m !m
UPDATE 2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
!m !m !m !m !m !m
Chapter 01: Introduction to Advanced Financial Accounting
!m ! m !m !m !m !m
1.1 Describe the accounting standards used in Canada and how they apply
!m !m !m !m !m !m !m !m !m !m !m
to different reporting entities.
!m !m !m
1) A private company in Canada that is closely held, has no debt, and wants
!m !m !m !m !m !m !m !m !m !m !m !m !m !m
to simplify the accounting process is most likely to report under which part of t
!m !m !m !m !m !m !m !m !m !m !m !m !m !m
he CPA Canada Handbook?
!m !m !m
A) Part II — Accounting Standards for Private Enterprises (ASPE)
!m !m !m !m !m !m !m !m
B) Part IV — Accounting Standards for Pensions
!m !m !m !m !m !m
C) Part I — International Financial Reporting Standards (IFRS)
!m !m !m !m !m !m !m
D) Part III — Accounting Standards for Not-for-Profit Organizations
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ANSWER_ A !m
Diff: 1 !m Type: MC !m
Taxonomy Category: Understanding !m ! m
Learning Outcome: 1.1 Describe the accounting standards used in Canada and ho
!m !m !m !m !m !m !m !m !m !m !m
w they apply to different reporting entities.
!m !m !m !m !m !m
2) In Canada, a private company has the choice to report under International
!m !m !m !m !m !m !m !m !m !m !m !m
Financial Reporting Standards (IFRS) or Accounting Standards for Private Enter
!m !m !m !m !m !m !m !m !m
prises (ASPE). Describe why the CPA Canada Handbook provides the option for
!m !m !m !m !m !m !m !m !m !m !m !m
private enterprises? !m
,2| P a g e !m !m !m !m
ANSWER_ IFRS is meant to create consistency and comparability in internation
!m !m !m !m !m !m !m !m !m !m
al markets. One of the limitations of IFRS is the complexity of reporting for equ
!m !m !m !m !m !m !m !m !m !m !m !m !m !m
ity investments that are meant to provide information to shareholders for decisio
!m !m !m !m !m !m !m !m !m !m !m
n-
making purposes. Many private companies are held by a small group of shareho
!m !m !m !m !m !m !m !m !m !m !m !m !m
lders who are often involved in the running of the business or have access to tha
!m !m !m !m !m !m !m !m !m !m !m !m !m !m !m
t information. As a result, the cost of applying more complex accounting policie
!m !m !m !m !m !m !m !m !m !m !m !m
s outweighs the benefit of the information provided to this closely held group of
!m !m !m !m !m !m !m !m !m !m !m !m !m !m
shareholders. To address this, the Accounting !m !m !m !m !m
Standards Board developed the Accounting Standards for Private Enterprises to m
!m !m !m !m !m !m !m !m !m !m
eet the needs of private
!m !m !m !m
enterprises. Private enterprises have the option to adopt IFRS or ASPE depending
!m !m !m !m !m !m !m !m !m !m !m
on the needs of the financial statement users.
!m !m !m !m !m !m !m !m
Diff: 2 !m Type: ES !m
Taxonomy Category: Understanding !m ! m
Learning Outcome: 1.1 Describe the accounting standards used in Canada and ho
!m !m !m !m !m !m !m !m !m !m !m
w they apply to different reporting entities.
!m !m !m !m !m !m
3) What are the four parts of the CPA Canada Handbook — !m !m !m !m !m !m !m !m !m !m
Accounting and which entities are they applicable to?
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ANSWER_ The four parts are: ! m !m !m !m
• Part I — International Financial Reporting Standards (IFRS) —
!m !m !m !m !m !m !m !m
applicable to publicly accountable, private, or not-for-profit entities.
!m !m !m !m !m !m !m !m
• Part II — !m !m
Accounting Standards for Private Enterprises (ASPE) —
!m !m !m !m !m !m !m
applicable to private entities.
!m !m !m !m
• Part III — Accounting Standards for Not-for-
!m !m !m !m !m !m
Profit Organizations — applicable to not-for-profit entities.
!m !m !m !m !m !m
• Part IV — Accounting Standards for Pension Plans —
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applicable to pension plans.
!m !m !m !m
, 3| P a g e!m !m !m !m
Diff: 1 !m Type: ES !m
Taxonomy Category: Remembering !m ! m
Learning Outcome: 1.1 Describe the accounting standards used in Canada and ho
!m !m !m !m !m !m !m !m !m !m !m
w they apply to different reporting entities.
!m !m !m !m !m !m
1.2 Discuss the conceptual framework for financial reporting and the gener
!m !m !m !m !m !m !m !m !m
al purpose of financial reporting.
!m !m !m !m
1) In 2011, Canada adopted International Financial Reporting Standards (IFRS) fo
!m !m !m !m !m !m !m !m !m !m
r publicly accountable enterprises. Explain the rationale for adopting IFRS in Ca
!m !m !m !m !m !m !m !m !m !m !m
nada.
ANSWER_ As the global economy expanded, the Accounting Standards Board
!m !m !m !m !m !m !m !m !m !m
(AcSB) chose to adopt IFRS in Canada to improve consistency and comparability
!m !m !m !m !m !m !m !m !m !m !m !
min the international capital markets.
!m !m !m !m
Diff: 1 !m Type: ES !m
Taxonomy Category: Understanding !m ! m
Learning Outcome: 1.2 Discuss the conceptual framework for financial reporting
!m !m !m !m !m !m !m !m !m !m
and the general purpose of financial reporting.
!m !m !m !m !m !m
1.3 Define and identify strategic and non- !m !m !m !m !m
strategic intercorporate investments made by reporting entities.
!m !m !m !m !m !m
1) Laliberte Products Ltd. (LPL), a public company, made several equit
!m !m !m !m !m !m !m !m !m
y investments in the current year.
!m !m !m !m !m
Which of the following investments would most likely be classified as an associat
!m !m !m !m !m !m !m !m !m !m !m !m
e in LPL's financial statements?
!m !m !m !m
ST CANADIAN EDITION BY NATHALIE JO
!m !m !m !m !m
HNSTONE AND KRISTIE DEWALD TEST B
!m !m !m ! m !m
ANK|\ FULL TEST BANK WITH ALL CHAPT
!m !m !m !m !m !m
ERS INCLUDED|| LATEST AND COMPLETE
!m !m !m !m !m
UPDATE 2025 WITH VERIFIED SOLUTIONS
!m !m !m !m
|| GUARANTEED A+ !m !m
,1| P a g e
!m !m !m !m
ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION BY !m !m !m !m !m !m !m !m
NATHALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL TE
!m !m !m !m !m !m !m !m
ST BANK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLETE
!m !m !m !m !m !m !m !m !m
UPDATE 2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
!m !m !m !m !m !m
Chapter 01: Introduction to Advanced Financial Accounting
!m ! m !m !m !m !m
1.1 Describe the accounting standards used in Canada and how they apply
!m !m !m !m !m !m !m !m !m !m !m
to different reporting entities.
!m !m !m
1) A private company in Canada that is closely held, has no debt, and wants
!m !m !m !m !m !m !m !m !m !m !m !m !m !m
to simplify the accounting process is most likely to report under which part of t
!m !m !m !m !m !m !m !m !m !m !m !m !m !m
he CPA Canada Handbook?
!m !m !m
A) Part II — Accounting Standards for Private Enterprises (ASPE)
!m !m !m !m !m !m !m !m
B) Part IV — Accounting Standards for Pensions
!m !m !m !m !m !m
C) Part I — International Financial Reporting Standards (IFRS)
!m !m !m !m !m !m !m
D) Part III — Accounting Standards for Not-for-Profit Organizations
!m !m !m !m !m !m !m
ANSWER_ A !m
Diff: 1 !m Type: MC !m
Taxonomy Category: Understanding !m ! m
Learning Outcome: 1.1 Describe the accounting standards used in Canada and ho
!m !m !m !m !m !m !m !m !m !m !m
w they apply to different reporting entities.
!m !m !m !m !m !m
2) In Canada, a private company has the choice to report under International
!m !m !m !m !m !m !m !m !m !m !m !m
Financial Reporting Standards (IFRS) or Accounting Standards for Private Enter
!m !m !m !m !m !m !m !m !m
prises (ASPE). Describe why the CPA Canada Handbook provides the option for
!m !m !m !m !m !m !m !m !m !m !m !m
private enterprises? !m
,2| P a g e !m !m !m !m
ANSWER_ IFRS is meant to create consistency and comparability in internation
!m !m !m !m !m !m !m !m !m !m
al markets. One of the limitations of IFRS is the complexity of reporting for equ
!m !m !m !m !m !m !m !m !m !m !m !m !m !m
ity investments that are meant to provide information to shareholders for decisio
!m !m !m !m !m !m !m !m !m !m !m
n-
making purposes. Many private companies are held by a small group of shareho
!m !m !m !m !m !m !m !m !m !m !m !m !m
lders who are often involved in the running of the business or have access to tha
!m !m !m !m !m !m !m !m !m !m !m !m !m !m !m
t information. As a result, the cost of applying more complex accounting policie
!m !m !m !m !m !m !m !m !m !m !m !m
s outweighs the benefit of the information provided to this closely held group of
!m !m !m !m !m !m !m !m !m !m !m !m !m !m
shareholders. To address this, the Accounting !m !m !m !m !m
Standards Board developed the Accounting Standards for Private Enterprises to m
!m !m !m !m !m !m !m !m !m !m
eet the needs of private
!m !m !m !m
enterprises. Private enterprises have the option to adopt IFRS or ASPE depending
!m !m !m !m !m !m !m !m !m !m !m
on the needs of the financial statement users.
!m !m !m !m !m !m !m !m
Diff: 2 !m Type: ES !m
Taxonomy Category: Understanding !m ! m
Learning Outcome: 1.1 Describe the accounting standards used in Canada and ho
!m !m !m !m !m !m !m !m !m !m !m
w they apply to different reporting entities.
!m !m !m !m !m !m
3) What are the four parts of the CPA Canada Handbook — !m !m !m !m !m !m !m !m !m !m
Accounting and which entities are they applicable to?
!m !m !m !m !m !m !m !m
ANSWER_ The four parts are: ! m !m !m !m
• Part I — International Financial Reporting Standards (IFRS) —
!m !m !m !m !m !m !m !m
applicable to publicly accountable, private, or not-for-profit entities.
!m !m !m !m !m !m !m !m
• Part II — !m !m
Accounting Standards for Private Enterprises (ASPE) —
!m !m !m !m !m !m !m
applicable to private entities.
!m !m !m !m
• Part III — Accounting Standards for Not-for-
!m !m !m !m !m !m
Profit Organizations — applicable to not-for-profit entities.
!m !m !m !m !m !m
• Part IV — Accounting Standards for Pension Plans —
!m !m !m !m !m !m !m !m
applicable to pension plans.
!m !m !m !m
, 3| P a g e!m !m !m !m
Diff: 1 !m Type: ES !m
Taxonomy Category: Remembering !m ! m
Learning Outcome: 1.1 Describe the accounting standards used in Canada and ho
!m !m !m !m !m !m !m !m !m !m !m
w they apply to different reporting entities.
!m !m !m !m !m !m
1.2 Discuss the conceptual framework for financial reporting and the gener
!m !m !m !m !m !m !m !m !m
al purpose of financial reporting.
!m !m !m !m
1) In 2011, Canada adopted International Financial Reporting Standards (IFRS) fo
!m !m !m !m !m !m !m !m !m !m
r publicly accountable enterprises. Explain the rationale for adopting IFRS in Ca
!m !m !m !m !m !m !m !m !m !m !m
nada.
ANSWER_ As the global economy expanded, the Accounting Standards Board
!m !m !m !m !m !m !m !m !m !m
(AcSB) chose to adopt IFRS in Canada to improve consistency and comparability
!m !m !m !m !m !m !m !m !m !m !m !
min the international capital markets.
!m !m !m !m
Diff: 1 !m Type: ES !m
Taxonomy Category: Understanding !m ! m
Learning Outcome: 1.2 Discuss the conceptual framework for financial reporting
!m !m !m !m !m !m !m !m !m !m
and the general purpose of financial reporting.
!m !m !m !m !m !m
1.3 Define and identify strategic and non- !m !m !m !m !m
strategic intercorporate investments made by reporting entities.
!m !m !m !m !m !m
1) Laliberte Products Ltd. (LPL), a public company, made several equit
!m !m !m !m !m !m !m !m !m
y investments in the current year.
!m !m !m !m !m
Which of the following investments would most likely be classified as an associat
!m !m !m !m !m !m !m !m !m !m !m !m
e in LPL's financial statements?
!m !m !m !m
