Advanced Accounting in Canada Test Bank (1st Canadian Edition) | Johnstone & Dewald

ADVANCED ACCOUNTING IN CANADA, 1S T CANADIAN EDITION
BY NATHALIE JOH NSTONE AND KRISTIE DEWALD TESTBA NK|\
FULLTESTBANKWITHALL CHAPTER SINCLUDED|| LATEST AND
COMPLETE UP DATE 2027 WITH VERIFIED SOLUTIONS|| G
UARANTEED A+
Scan the QR code for more Documents

,1| P a g e
m m m m




ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION B m m m m m m m




YN m




ATHALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL T
m m m m m m m m




EST m




BANK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLETE
m m m m m m m m




UPD ATE 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 to
m m m m m m m m m m m m



different reporting entities. m m




1) A private company in Canada that is closely held, has no debt, and
m m m m m m m m m m m m m




wants to m m




simplify the accounting process is most likely to report under which part o
m m m m m m m m m m m m




f the CP A Canada Handbook?
m 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 how
m m m m m m m m m m m m




they apply to different reporting entities.
m m m m m

,2) In Canada, a private company has the choice to report under Internati
m m m m m m m m m m m




onal Fi m




nancial Reporting Standards (IFRS) or Accounting Standards for Private Ent
m m m m m m m m m




erprise
s (ASPE). Describe why the CPA Canada Handbook provides the option for
m m m m m m m m m m m




mprivate
menterprises?

, 2| P a g e
m m m m




ANSWER_ IFRS is meant to create consistency and comparability in intern
m m m m m m m m m m




ational m




markets. One of the limitations of IFRS is the complexity of reporting for eq
m m m m m m m m m m m m m




uity in m




vestments that are meant to provide information to shareholders for decisi
m m m m m m m m m m




on-
mmaking purposes. Many private companies are held by a small group of shareholde
m m m m m m m m m m m m



rs who are often involved in the running of the business or have access to th
m m m m m m m m m m m m m m m




at infor
m




mation. As a result, the cost of applying more complex accounting policies
m m m m m m m m m m m m




outweig
hs the benefit of the information provided to this closely held group of shar
m m m m m m m m m m m m m




eholders
. To address this, the Accounting
m m m m m




Standards Board developed the Accounting Standards for Private Enterprises to me
m m m m m m m m m m




et the needs of private
m m m m




enterprises. Private enterprises have the option to adopt IFRS or ASPE depending o
m m m m m m m m m m m m




n the needs of the financial statement users.
m m m m m m m




Diff: 2 m Type: ES m




Taxonomy Category: m m




Understanding

Learning Outcome: 1.1 Describe the accounting standards used in Canada and how
m m m m m m m m m m m m




they apply to different reporting entities.
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