,1 |P a g e
0 0 0 0
ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION BY NA 0 0 0 0 0 0 0 0
THALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL TEST BA
0 0 0 0 0 0 0 0 0
NK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLETE UPDATE
0 0 0 0 0 0 0 0 0
2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
0 0 0 0 0
Chapter 01: Introduction to Advanced Financial Accounting
0 0 0 0 0 0
1.1 Describe the accounting standards used in Canada and how they apply to dif 0 0 0 0 0 0 0 0 0 0 0 0
ferent reporting entities.
0 0
1) A private company in Canada that is closely held, has no debt, and wants to sim
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
plify the accounting process is most likely to report under which part of the CPA Can
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
ada Handbook?
0
A) Part II — Accounting Standards for Private Enterprises (ASPE)
0 0 0 0 0 0 0 0
B) Part IV — Accounting Standards for Pensions
0 0 0 0 0 0
C) Part I — International Financial Reporting Standards (IFRS)
0 0 0 0 0 0 0
D) Part III — Accounting Standards for Not-for-Profit Organizations
0 0 0 0 0 0 0
ANSWER_ A 0
Diff: 1 0 Type: MC 0
Taxonomy Category: Understanding 0 0
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how the
0 0 0 0 0 0 0 0 0 0 0 0
y apply to different reporting entities.
0 0 0 0 0
2) In Canada, a private company has the choice to report under International Fina
0 0 0 0 0 0 0 0 0 0 0 0
ncial Reporting Standards (IFRS) or Accounting Standards for Private Enterprises (A
0 0 0 0 0 0 0 0 0 0
SPE). Describe why the CPA Canada Handbook provides the option for private enterp
0 0 0 0 0 0 0 0 0 0 0 0
rises?
,2 |P a g e 0 0 0 0
ANSWER_ IFRS is meant to create consistency and comparability in international m0 0 0 0 0 0 0 0 0 0 0
arkets. One of the limitations of IFRS is the complexity of reporting for equity invest
0 0 0 0 0 0 0 0 0 0 0 0 0 0
ments that are meant to provide information to shareholders for decision-
0 0 0 0 0 0 0 0 0 0
making purposes. Many private companies are held by a small group of shareholders
0 0 0 0 0 0 0 0 0 0 0 0 0 0
who are often involved in the running of the business or have access to that informatio
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
n. As a result, the cost of applying more complex accounting policies outweighs the be
0 0 0 0 0 0 0 0 0 0 0 0 0 0
nefit of the information provided to this closely held group of shareholders. To addres
0 0 0 0 0 0 0 0 0 0 0 0 0
s this, the Accounting
0 0 0
Standards Board developed the Accounting Standards for Private Enterprises to meet t
0 0 0 0 0 0 0 0 0 0 0
he needs of private
0 0 0
enterprises. Private enterprises have the option to adopt IFRS or ASPE depending on t
0 0 0 0 0 0 0 0 0 0 0 0 0
he needs of the financial statement users.
0 0 0 0 0 0
Diff: 2 0 Type: ES 0
Taxonomy Category: Understanding 0 0
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how the
0 0 0 0 0 0 0 0 0 0 0 0
y apply to different reporting entities.
0 0 0 0 0
3) What are the four parts of the CPA Canada Handbook — 0 0 0 0 0 0 0 0 0 0
Accounting and which entities are they applicable to?
0 0 0 0 0 0 0 0
ANSWER_ The four parts are: 0 0 0 0
• Part I — International Financial Reporting Standards (IFRS) —
0 0 0 0 0 0 0 0
applicable to publicly accountable, private, or not-for-profit entities.
0 0 0 0 0 0 0 0
• Part II — Accounting Standards for Private Enterprises (ASPE) —
0 0 0 0 0 0 0 0 0
applicable to private entities.
0 0 0 0
• Part III — Accounting Standards for Not-for-Profit Organizations —
0 0 0 0 0 0 0 0
applicable to not-for-profit entities.
0 0 0 0
• Part IV — Accounting Standards for Pension Plans — 0 0 0 0 0 0 0 0
applicable to pension plans.
0 0 0 0
, 3 |P a g e
0 0 0 0
Diff: 1 0 Type: ES 0
Taxonomy Category: Remembering 0 0
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how the
0 0 0 0 0 0 0 0 0 0 0 0
y apply to different reporting entities.
0 0 0 0 0
1.2 Discuss the conceptual framework for financial reporting and the general p
0 0 0 0 0 0 0 0 0 0
urpose of financial reporting. 0 0 0
1) In 2011, Canada adopted International Financial Reporting Standards (IFRS) for pu
0 0 0 0 0 0 0 0 0 0 0
blicly accountable enterprises. Explain the rationale for adopting IFRS in Canada.
0 0 0 0 0 0 0 0 0 0
ANSWER_ As the global economy expanded, the Accounting Standards Board (AcS
0 0 0 0 0 0 0 0 0 0
B) chose to adopt IFRS in Canada to improve consistency and comparability in the int
0 0 0 0 0 0 0 0 0 0 0 0 0 0
ernational capital markets. 0 0
Diff: 1 0 Type: ES 0
Taxonomy Category: Understanding 0 0
Learning Outcome: 1.2 Discuss the conceptual framework for financial reporting and
0 0 0 0 0 0 0 0 0 0 0
the general purpose of financial reporting.
0 0 0 0 0
1.3 Define and identify strategic and non- 0 0 0 0 0
strategic intercorporate investments made by reporting entities.
0 0 0 0 0 0
1) Laliberte Products Ltd. (LPL), a public company, made several equity in 0 0 0 0 0 0 0 0 0 0
vestments in the current year. 0 0 0 0
Which of the following investments would most likely be classified as an associate in
0 0 0 0 0 0 0 0 0 0 0 0 0 0
LPL's financial statements? 0 0
0 0 0 0
ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION BY NA 0 0 0 0 0 0 0 0
THALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL TEST BA
0 0 0 0 0 0 0 0 0
NK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLETE UPDATE
0 0 0 0 0 0 0 0 0
2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
0 0 0 0 0
Chapter 01: Introduction to Advanced Financial Accounting
0 0 0 0 0 0
1.1 Describe the accounting standards used in Canada and how they apply to dif 0 0 0 0 0 0 0 0 0 0 0 0
ferent reporting entities.
0 0
1) A private company in Canada that is closely held, has no debt, and wants to sim
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
plify the accounting process is most likely to report under which part of the CPA Can
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
ada Handbook?
0
A) Part II — Accounting Standards for Private Enterprises (ASPE)
0 0 0 0 0 0 0 0
B) Part IV — Accounting Standards for Pensions
0 0 0 0 0 0
C) Part I — International Financial Reporting Standards (IFRS)
0 0 0 0 0 0 0
D) Part III — Accounting Standards for Not-for-Profit Organizations
0 0 0 0 0 0 0
ANSWER_ A 0
Diff: 1 0 Type: MC 0
Taxonomy Category: Understanding 0 0
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how the
0 0 0 0 0 0 0 0 0 0 0 0
y apply to different reporting entities.
0 0 0 0 0
2) In Canada, a private company has the choice to report under International Fina
0 0 0 0 0 0 0 0 0 0 0 0
ncial Reporting Standards (IFRS) or Accounting Standards for Private Enterprises (A
0 0 0 0 0 0 0 0 0 0
SPE). Describe why the CPA Canada Handbook provides the option for private enterp
0 0 0 0 0 0 0 0 0 0 0 0
rises?
,2 |P a g e 0 0 0 0
ANSWER_ IFRS is meant to create consistency and comparability in international m0 0 0 0 0 0 0 0 0 0 0
arkets. One of the limitations of IFRS is the complexity of reporting for equity invest
0 0 0 0 0 0 0 0 0 0 0 0 0 0
ments that are meant to provide information to shareholders for decision-
0 0 0 0 0 0 0 0 0 0
making purposes. Many private companies are held by a small group of shareholders
0 0 0 0 0 0 0 0 0 0 0 0 0 0
who are often involved in the running of the business or have access to that informatio
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
n. As a result, the cost of applying more complex accounting policies outweighs the be
0 0 0 0 0 0 0 0 0 0 0 0 0 0
nefit of the information provided to this closely held group of shareholders. To addres
0 0 0 0 0 0 0 0 0 0 0 0 0
s this, the Accounting
0 0 0
Standards Board developed the Accounting Standards for Private Enterprises to meet t
0 0 0 0 0 0 0 0 0 0 0
he needs of private
0 0 0
enterprises. Private enterprises have the option to adopt IFRS or ASPE depending on t
0 0 0 0 0 0 0 0 0 0 0 0 0
he needs of the financial statement users.
0 0 0 0 0 0
Diff: 2 0 Type: ES 0
Taxonomy Category: Understanding 0 0
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how the
0 0 0 0 0 0 0 0 0 0 0 0
y apply to different reporting entities.
0 0 0 0 0
3) What are the four parts of the CPA Canada Handbook — 0 0 0 0 0 0 0 0 0 0
Accounting and which entities are they applicable to?
0 0 0 0 0 0 0 0
ANSWER_ The four parts are: 0 0 0 0
• Part I — International Financial Reporting Standards (IFRS) —
0 0 0 0 0 0 0 0
applicable to publicly accountable, private, or not-for-profit entities.
0 0 0 0 0 0 0 0
• Part II — Accounting Standards for Private Enterprises (ASPE) —
0 0 0 0 0 0 0 0 0
applicable to private entities.
0 0 0 0
• Part III — Accounting Standards for Not-for-Profit Organizations —
0 0 0 0 0 0 0 0
applicable to not-for-profit entities.
0 0 0 0
• Part IV — Accounting Standards for Pension Plans — 0 0 0 0 0 0 0 0
applicable to pension plans.
0 0 0 0
, 3 |P a g e
0 0 0 0
Diff: 1 0 Type: ES 0
Taxonomy Category: Remembering 0 0
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how the
0 0 0 0 0 0 0 0 0 0 0 0
y apply to different reporting entities.
0 0 0 0 0
1.2 Discuss the conceptual framework for financial reporting and the general p
0 0 0 0 0 0 0 0 0 0
urpose of financial reporting. 0 0 0
1) In 2011, Canada adopted International Financial Reporting Standards (IFRS) for pu
0 0 0 0 0 0 0 0 0 0 0
blicly accountable enterprises. Explain the rationale for adopting IFRS in Canada.
0 0 0 0 0 0 0 0 0 0
ANSWER_ As the global economy expanded, the Accounting Standards Board (AcS
0 0 0 0 0 0 0 0 0 0
B) chose to adopt IFRS in Canada to improve consistency and comparability in the int
0 0 0 0 0 0 0 0 0 0 0 0 0 0
ernational capital markets. 0 0
Diff: 1 0 Type: ES 0
Taxonomy Category: Understanding 0 0
Learning Outcome: 1.2 Discuss the conceptual framework for financial reporting and
0 0 0 0 0 0 0 0 0 0 0
the general purpose of financial reporting.
0 0 0 0 0
1.3 Define and identify strategic and non- 0 0 0 0 0
strategic intercorporate investments made by reporting entities.
0 0 0 0 0 0
1) Laliberte Products Ltd. (LPL), a public company, made several equity in 0 0 0 0 0 0 0 0 0 0
vestments in the current year. 0 0 0 0
Which of the following investments would most likely be classified as an associate in
0 0 0 0 0 0 0 0 0 0 0 0 0 0
LPL's financial statements? 0 0
