,1| P a g e
km km km km
ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION BY
km km km km km km km km
NATHALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL T
km km km km km km km km
EST BANK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLE
km km km km km km km km
TE UPDATE 2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
km km km km km km km
Chapter 01: Introduction to Advanced Financial Accounting
km k m km km km km
1.1 Describe the accounting standards used in Canada and how they apply
km km km km km km km km km km k
to different reporting entities.
m km km km
1) A private company in Canada that is closely held, has no debt, and want
km km km km km km km km km km km km km
s to simplify the accounting process is most likely to report under which part
km km km km km km km km km km km km km km
of the CPA Canada Handbook?
km km km km
A) Part II — Accounting Standards for Private Enterprises (ASPE)
km km km km km km km km
B) Part IV — Accounting Standards for Pensions
km km km km km km
C) Part I — International Financial Reporting Standards (IFRS)
km km km km km km km
D) Part III — Accounting Standards for Not-for-Profit Organizations
km km km km km km km
ANSWER_ A km
Diff: 1 km Type: MC km
Taxonomy Category: Understanding km k m
Learning Outcome: 1.1 Describe the accounting standards used in Canada and h
km km km km km km km km km km km
ow they apply to different reporting entities.
km km km km km km
2) In Canada, a private company has the choice to report under Internationa
km km km km km km km km km km km
l Financial Reporting Standards (IFRS) or Accounting Standards for Private En
km km km km km km km km km km
terprises (ASPE). Describe why the CPA Canada Handbook provides the option
km km km km km km km km km km k
mfor private enterprises?
km km
,2| P a g ekm km km km
ANSWER_ IFRS is meant to create consistency and comparability in internatio
km km km km km km km km km km
nal markets. One of the limitations of IFRS is the complexity of reporting for e
km km km km km km km km km km km km km km
quity investments that are meant to provide information to shareholders for deci
km km km km km km km km km km km
sion-
making purposes. Many private companies are held by a small group of share
km km km km km km km km km km km km km
holders who are often involved in the running of the business or have access to
km km km km km km km km km km km km km km
that information. As a result, the cost of applying more complex accounting p
km km km km km km km km km km km km km
olicies outweighs the benefit of the information provided to this closely held gr
km km km km km km km km km km km km
oup of shareholders. To address this, the Accounting
km km km km km km km
Standards Board developed the Accounting Standards for Private Enterprises to
km km km km km km km km km km
meet the needs of private
km km km km
enterprises. Private enterprises have the option to adopt IFRS or ASPE dependin
km km km km km km km km km km km
g on the needs of the financial statement users.
km km km km km km km km
Diff: 2 km Type: ES km
Taxonomy Category: Understanding km k m
Learning Outcome: 1.1 Describe the accounting standards used in Canada and h
km km km km km km km km km km km
ow they apply to different reporting entities.
km km km km km km
3) What are the four parts of the CPA Canada Handbook —
km km km km km km km km km km
Accounting and which entities are they applicable to?
km km km km km km km km
ANSWER_ The four parts are: k m km km km
• Part I — International Financial Reporting Standards (IFRS) —
km km km km km km km km
applicable to publicly accountable, private, or not-for-profit entities.
km km km km km km km km
• Part II — km km
Accounting Standards for Private Enterprises (ASPE) —
km km km km km km km
kmapplicable to private entities. km km km
• Part III — Accounting Standards for Not-for-
km km km km km km
Profit Organizations — applicable to not-for-profit entities.
km km km km km km
• Part IV — Accounting Standards for Pension Plans —
km km km km km km km km
applicable to pension plans.
km km km km
, 3| P a g e
km km km km
Diff: 1 km Type: ES km
Taxonomy Category: Remembering km k m
Learning Outcome: 1.1 Describe the accounting standards used in Canada and h
km km km km km km km km km km km
ow they apply to different reporting entities.
km km km km km km
1.2 Discuss the conceptual framework for financial reporting and the gener
km km km km km km km km km
al purpose of financial reporting.
km km km km
1) In 2011, Canada adopted International Financial Reporting Standards (IFRS) f
km km km km km km km km km km
or publicly accountable enterprises. Explain the rationale for adopting IFRS in
km km km km km km km km km km km
Canada.
ANSWER_ As the global economy expanded, the Accounting Standards Board
km km km km km km km km km k
m(AcSB) chose to adopt IFRS in Canada to improve consistency and comparabili
km km km km km km km km km km km
ty in the international capital markets.
km km km km km
Diff: 1 km Type: ES km
Taxonomy Category: Understanding km k m
Learning Outcome: 1.2 Discuss the conceptual framework for financial reporting
km km km km km km km km km k
and the general purpose of financial reporting.
m km km km km km km
1.3 Define and identify strategic and non- km km km km km
strategic intercorporate investments made by reporting entities.
km km km km km km
1) Laliberte Products Ltd. (LPL), a public company, made several equi
km km km km km km km km km
ty investments in the current year.
km km km km km
Which of the following investments would most likely be classified as an associ
km km km km km km km km km km km km
ate in LPL's financial statements?
km km km km
km km km km
ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION BY
km km km km km km km km
NATHALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL T
km km km km km km km km
EST BANK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLE
km km km km km km km km
TE UPDATE 2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
km km km km km km km
Chapter 01: Introduction to Advanced Financial Accounting
km k m km km km km
1.1 Describe the accounting standards used in Canada and how they apply
km km km km km km km km km km k
to different reporting entities.
m km km km
1) A private company in Canada that is closely held, has no debt, and want
km km km km km km km km km km km km km
s to simplify the accounting process is most likely to report under which part
km km km km km km km km km km km km km km
of the CPA Canada Handbook?
km km km km
A) Part II — Accounting Standards for Private Enterprises (ASPE)
km km km km km km km km
B) Part IV — Accounting Standards for Pensions
km km km km km km
C) Part I — International Financial Reporting Standards (IFRS)
km km km km km km km
D) Part III — Accounting Standards for Not-for-Profit Organizations
km km km km km km km
ANSWER_ A km
Diff: 1 km Type: MC km
Taxonomy Category: Understanding km k m
Learning Outcome: 1.1 Describe the accounting standards used in Canada and h
km km km km km km km km km km km
ow they apply to different reporting entities.
km km km km km km
2) In Canada, a private company has the choice to report under Internationa
km km km km km km km km km km km
l Financial Reporting Standards (IFRS) or Accounting Standards for Private En
km km km km km km km km km km
terprises (ASPE). Describe why the CPA Canada Handbook provides the option
km km km km km km km km km km k
mfor private enterprises?
km km
,2| P a g ekm km km km
ANSWER_ IFRS is meant to create consistency and comparability in internatio
km km km km km km km km km km
nal markets. One of the limitations of IFRS is the complexity of reporting for e
km km km km km km km km km km km km km km
quity investments that are meant to provide information to shareholders for deci
km km km km km km km km km km km
sion-
making purposes. Many private companies are held by a small group of share
km km km km km km km km km km km km km
holders who are often involved in the running of the business or have access to
km km km km km km km km km km km km km km
that information. As a result, the cost of applying more complex accounting p
km km km km km km km km km km km km km
olicies outweighs the benefit of the information provided to this closely held gr
km km km km km km km km km km km km
oup of shareholders. To address this, the Accounting
km km km km km km km
Standards Board developed the Accounting Standards for Private Enterprises to
km km km km km km km km km km
meet the needs of private
km km km km
enterprises. Private enterprises have the option to adopt IFRS or ASPE dependin
km km km km km km km km km km km
g on the needs of the financial statement users.
km km km km km km km km
Diff: 2 km Type: ES km
Taxonomy Category: Understanding km k m
Learning Outcome: 1.1 Describe the accounting standards used in Canada and h
km km km km km km km km km km km
ow they apply to different reporting entities.
km km km km km km
3) What are the four parts of the CPA Canada Handbook —
km km km km km km km km km km
Accounting and which entities are they applicable to?
km km km km km km km km
ANSWER_ The four parts are: k m km km km
• Part I — International Financial Reporting Standards (IFRS) —
km km km km km km km km
applicable to publicly accountable, private, or not-for-profit entities.
km km km km km km km km
• Part II — km km
Accounting Standards for Private Enterprises (ASPE) —
km km km km km km km
kmapplicable to private entities. km km km
• Part III — Accounting Standards for Not-for-
km km km km km km
Profit Organizations — applicable to not-for-profit entities.
km km km km km km
• Part IV — Accounting Standards for Pension Plans —
km km km km km km km km
applicable to pension plans.
km km km km
, 3| P a g e
km km km km
Diff: 1 km Type: ES km
Taxonomy Category: Remembering km k m
Learning Outcome: 1.1 Describe the accounting standards used in Canada and h
km km km km km km km km km km km
ow they apply to different reporting entities.
km km km km km km
1.2 Discuss the conceptual framework for financial reporting and the gener
km km km km km km km km km
al purpose of financial reporting.
km km km km
1) In 2011, Canada adopted International Financial Reporting Standards (IFRS) f
km km km km km km km km km km
or publicly accountable enterprises. Explain the rationale for adopting IFRS in
km km km km km km km km km km km
Canada.
ANSWER_ As the global economy expanded, the Accounting Standards Board
km km km km km km km km km k
m(AcSB) chose to adopt IFRS in Canada to improve consistency and comparabili
km km km km km km km km km km km
ty in the international capital markets.
km km km km km
Diff: 1 km Type: ES km
Taxonomy Category: Understanding km k m
Learning Outcome: 1.2 Discuss the conceptual framework for financial reporting
km km km km km km km km km k
and the general purpose of financial reporting.
m km km km km km km
1.3 Define and identify strategic and non- km km km km km
strategic intercorporate investments made by reporting entities.
km km km km km km
1) Laliberte Products Ltd. (LPL), a public company, made several equi
km km km km km km km km km
ty investments in the current year.
km km km km km
Which of the following investments would most likely be classified as an associ
km km km km km km km km km km km km
ate in LPL's financial statements?
km km km km
