ADVANCED ACCOUNTING IN CANADA, 1S
n n n n
T CANADIAN EDITION BY NATHALIE JOH
n n n n n
NSTONE AND KRISTIE DEWALD TEST BAN
n n n n n
K|\ FULL TEST BANK WITH ALL CHAPTERS
n n n n n n n
INCLUDED|| LATEST AND COMPLETE UPD
n n n n
ATE 2025 WITH VERIFIED SOLUTIONS|| GU
n n n n n
ARANTEED A+ n
,1 |nPn an gn e
ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION BY NA n n n n n n n n
THALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL TEST B
n n n n n n n n n
ANK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLETE UPDA
n n n n n n n n
TE 2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
n n n n n n
Chapter 01: Introduction to Advanced Financial Accounting
n n n n n n
1.1 Describe the accounting standards used in Canada and how they apply to d
n n n n n n n n n n n n
ifferent reporting entities. n n
1) A private company in Canada that is closely held, has no debt, and wants to si
n n n n n n n n n n n n n n n
mplify the accounting process is most likely to report under which part of the CPA
n n n n n n n n n n n n n n n
Canada Handbook? n
A) Part II — Accounting Standards for Private Enterprises (ASPE)
n n n n n n n n
B) Part IV — Accounting Standards for Pensions
n n n n n n
C) Part I — International Financial Reporting Standards (IFRS)
n n n n n n n
D) Part III — Accounting Standards for Not-for-Profit Organizations
n n n n n n n
ANSWER_ A n
Diff: 1 n Type: MC n
Taxonomy Category: Understanding n n
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how th
n n n n n n n n n n n n
ey apply to different reporting entities.
n n n n n
2) In Canada, a private company has the choice to report under International Fin
n n n n n n n n n n n n
ancial Reporting Standards (IFRS) or Accounting Standards for Private Enterprises (
n n n n n n n n n n
ASPE). Describe why the CPA Canada Handbook provides the option for private ent
n n n n n n n n n n n n
erprises?
,2 |nPn an gn e
ANSWER_ IFRS is meant to create consistency and comparability in international
n n n n n n n n n n n
markets. One of the limitations of IFRS is the complexity of reporting for equity inve
n n n n n n n n n n n n n n
stments that are meant to provide information to shareholders for decision-
n n n n n n n n n n
nmaking purposes. Many private companies are held by a small group of shareholder
n n n n n n n n n n n n
s who are often involved in the running of the business or have access to that informa
n n n n n n n n n n n n n n n n
tion. As a result, the cost of applying more complex accounting policies outweighs th
n n n n n n n n n n n n n
e benefit of the information provided to this closely held group of shareholders. To a
n n n n n n n n n n n n n n
ddress this, the Accounting n n n
Standards Board developed the Accounting Standards for Private Enterprises to meet
n n n n n n n n n n
the needs of private
n n n n
enterprises. Private enterprises have the option to adopt IFRS or ASPE depending on
n n n n n n n n n n n n n
the needs of the financial statement users.
n n n n n n
Diff: 2 n Type: ES n
Taxonomy Category: Understanding n n
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how th
n n n n n n n n n n n n
ey apply to different reporting entities.
n n n n n
3) What are the four parts of the CPA Canada Handbook —n n n n n n n n n n
Accounting and which entities are they applicable to?
n n n n n n n n
ANSWER_ The four parts are: n n n n
• Part I — International Financial Reporting Standards (IFRS) —
n n n n n n n n
napplicable to publicly accountable, private, or not-for-profit entities.
n n n n n n n
• Part II — Accounting Standards for Private Enterprises (ASPE) —
n n n n n n n n n
napplicable to private entities. n n n
• Part III — Accounting Standards for Not-for-Profit Organizations —
n n n n n n n n
napplicable to not-for-profit entities. n n n
• Part IV — Accounting Standards for Pension Plans —
n n n n n n n n
napplicable to pension plans. n n n
, 3 |nPn an gn e
Diff: 1 n Type: ES n
Taxonomy Category: Remembering n n
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how th
n n n n n n n n n n n n
ey apply to different reporting entities.
n n n n n
1.2 Discuss the conceptual framework for financial reporting and the general
n n n n n n n n n n
purpose of financial reporting.
n n n
1) In 2011, Canada adopted International Financial Reporting Standards (IFRS) for p
n n n n n n n n n n n
ublicly accountable enterprises. Explain the rationale for adopting IFRS in Canada.
n n n n n n n n n n
ANSWER_ As the global economy expanded, the Accounting Standards Board (Ac
n n n n n n n n n n
SB) chose to adopt IFRS in Canada to improve consistency and comparability in the i
n n n n n n n n n n n n n n
nternational capital markets. n n
Diff: 1 n Type: ES n
Taxonomy Category: Understanding n n
Learning Outcome: 1.2 Discuss the conceptual framework for financial reporting and
n n n n n n n n n n
the general purpose of financial reporting.
n n n n n n
1.3 Define and identify strategic and non- n n n n n
strategic intercorporate investments made by reporting entities.
n n n n n n
1) Laliberte Products Ltd. (LPL), a public company, made several equity i
n n n n n n n n n n
nvestments in the current year. n n n n
Which of the following investments would most likely be classified as an associate in
n n n n n n n n n n n n n
LPL's financial statements?
n n n
n n n n
T CANADIAN EDITION BY NATHALIE JOH
n n n n n
NSTONE AND KRISTIE DEWALD TEST BAN
n n n n n
K|\ FULL TEST BANK WITH ALL CHAPTERS
n n n n n n n
INCLUDED|| LATEST AND COMPLETE UPD
n n n n
ATE 2025 WITH VERIFIED SOLUTIONS|| GU
n n n n n
ARANTEED A+ n
,1 |nPn an gn e
ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION BY NA n n n n n n n n
THALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL TEST B
n n n n n n n n n
ANK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLETE UPDA
n n n n n n n n
TE 2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
n n n n n n
Chapter 01: Introduction to Advanced Financial Accounting
n n n n n n
1.1 Describe the accounting standards used in Canada and how they apply to d
n n n n n n n n n n n n
ifferent reporting entities. n n
1) A private company in Canada that is closely held, has no debt, and wants to si
n n n n n n n n n n n n n n n
mplify the accounting process is most likely to report under which part of the CPA
n n n n n n n n n n n n n n n
Canada Handbook? n
A) Part II — Accounting Standards for Private Enterprises (ASPE)
n n n n n n n n
B) Part IV — Accounting Standards for Pensions
n n n n n n
C) Part I — International Financial Reporting Standards (IFRS)
n n n n n n n
D) Part III — Accounting Standards for Not-for-Profit Organizations
n n n n n n n
ANSWER_ A n
Diff: 1 n Type: MC n
Taxonomy Category: Understanding n n
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how th
n n n n n n n n n n n n
ey apply to different reporting entities.
n n n n n
2) In Canada, a private company has the choice to report under International Fin
n n n n n n n n n n n n
ancial Reporting Standards (IFRS) or Accounting Standards for Private Enterprises (
n n n n n n n n n n
ASPE). Describe why the CPA Canada Handbook provides the option for private ent
n n n n n n n n n n n n
erprises?
,2 |nPn an gn e
ANSWER_ IFRS is meant to create consistency and comparability in international
n n n n n n n n n n n
markets. One of the limitations of IFRS is the complexity of reporting for equity inve
n n n n n n n n n n n n n n
stments that are meant to provide information to shareholders for decision-
n n n n n n n n n n
nmaking purposes. Many private companies are held by a small group of shareholder
n n n n n n n n n n n n
s who are often involved in the running of the business or have access to that informa
n n n n n n n n n n n n n n n n
tion. As a result, the cost of applying more complex accounting policies outweighs th
n n n n n n n n n n n n n
e benefit of the information provided to this closely held group of shareholders. To a
n n n n n n n n n n n n n n
ddress this, the Accounting n n n
Standards Board developed the Accounting Standards for Private Enterprises to meet
n n n n n n n n n n
the needs of private
n n n n
enterprises. Private enterprises have the option to adopt IFRS or ASPE depending on
n n n n n n n n n n n n n
the needs of the financial statement users.
n n n n n n
Diff: 2 n Type: ES n
Taxonomy Category: Understanding n n
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how th
n n n n n n n n n n n n
ey apply to different reporting entities.
n n n n n
3) What are the four parts of the CPA Canada Handbook —n n n n n n n n n n
Accounting and which entities are they applicable to?
n n n n n n n n
ANSWER_ The four parts are: n n n n
• Part I — International Financial Reporting Standards (IFRS) —
n n n n n n n n
napplicable to publicly accountable, private, or not-for-profit entities.
n n n n n n n
• Part II — Accounting Standards for Private Enterprises (ASPE) —
n n n n n n n n n
napplicable to private entities. n n n
• Part III — Accounting Standards for Not-for-Profit Organizations —
n n n n n n n n
napplicable to not-for-profit entities. n n n
• Part IV — Accounting Standards for Pension Plans —
n n n n n n n n
napplicable to pension plans. n n n
, 3 |nPn an gn e
Diff: 1 n Type: ES n
Taxonomy Category: Remembering n n
Learning Outcome: 1.1 Describe the accounting standards used in Canada and how th
n n n n n n n n n n n n
ey apply to different reporting entities.
n n n n n
1.2 Discuss the conceptual framework for financial reporting and the general
n n n n n n n n n n
purpose of financial reporting.
n n n
1) In 2011, Canada adopted International Financial Reporting Standards (IFRS) for p
n n n n n n n n n n n
ublicly accountable enterprises. Explain the rationale for adopting IFRS in Canada.
n n n n n n n n n n
ANSWER_ As the global economy expanded, the Accounting Standards Board (Ac
n n n n n n n n n n
SB) chose to adopt IFRS in Canada to improve consistency and comparability in the i
n n n n n n n n n n n n n n
nternational capital markets. n n
Diff: 1 n Type: ES n
Taxonomy Category: Understanding n n
Learning Outcome: 1.2 Discuss the conceptual framework for financial reporting and
n n n n n n n n n n
the general purpose of financial reporting.
n n n n n n
1.3 Define and identify strategic and non- n n n n n
strategic intercorporate investments made by reporting entities.
n n n n n n
1) Laliberte Products Ltd. (LPL), a public company, made several equity i
n n n n n n n n n n
nvestments in the current year. n n n n
Which of the following investments would most likely be classified as an associate in
n n n n n n n n n n n n n
LPL's financial statements?
n n n
