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 N sx sx sx sx sx sx sx sx



ATHALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL TEST
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BANK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLETE UP
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DATE 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. sx sx




1) A private company in Canada that is closely held, has no debt, and wants to
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simplify the accounting process is most likely to report under which part of the C
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PA 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 sx




Diff: 1 sx Type: MC sx




Taxonomy Category: Understanding sx s x




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 Fi
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nancial Reporting Standards (IFRS) or Accounting Standards for Private Enterpris
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es (ASPE). Describe why the CPA Canada Handbook provides the option for priva
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te enterprises?
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ANSWER_ IFRS is meant to create consistency and comparability in international
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markets. One of the limitations of IFRS is the complexity of reporting for equity i
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nvestments 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 sharehold
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ers who are often involved in the running of the business or have access to that inf
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ormation. As a result, the cost of applying more complex accounting policies outw
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eighs the benefit of the information provided to this closely held group of sharehol
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ders. To address this, the Accounting
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Standards Board developed the Accounting Standards for Private Enterprises to me
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et the needs of private
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enterprises. Private enterprises have the option to adopt IFRS or ASPE depending o
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n the needs of the financial statement users.
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Diff: 2 sx Type: ES sx




Taxonomy Category: Understanding sx s x




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 — sx sx sx sx sx sx sx sx sx sx



Accounting and which entities are they applicable to?
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ANSWER_ The four parts are: s x sx sx sx




• 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 — 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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Diff: 1 sx Type: ES sx




Taxonomy Category: Remembering sx s x




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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1.2 Discuss the conceptual framework for financial reporting and the general
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purpose of financial reporting. sx sx sx




1) In 2011, Canada adopted International Financial Reporting Standards (IFRS) for
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publicly accountable enterprises. Explain the rationale for adopting IFRS in Canad
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a.
ANSWER_ As the global economy expanded, the Accounting Standards Board (
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AcSB) chose to adopt IFRS in Canada to improve consistency and comparability in
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the international capital markets.
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Diff: 1 sx Type: ES sx




Taxonomy Category: Understanding sx s x




Learning Outcome: 1.2 Discuss the conceptual framework for financial reporting a
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nd the general purpose of financial reporting.
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1.3 Define and identify strategic and non- sx sx sx sx sx



strategic intercorporate investments made by reporting entities.
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1) Laliberte Products Ltd. (LPL), a public company, made several equity
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investments in the current year. sx sx sx sx




Which of the following investments would most likely be classified as an associate
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in LPL's financial statements?
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