ADVANCED FINANCIAL ACCOUNTING IN
CANADA 1E NATHALIE JOHNSTONE
KRISTIE DEWALD CHERYL WILSON
SOLUTION MANUAL WITH TEST BANK
LATEST COMPREHENSIVE TEST PAPER
2026 COMPLETE ANSWERS ACCURATE
⫸ SOLUTIONS TO REVIEW QUESTIONS Answer: 1. There are
times when external users may want financial reports that do not follow
GAAP. For example, users may need financial statements using non-
GAAP accounting policies required for legislative or regulatory
purposes, or for contract compliance. A prospective lender may want to
receive a balance sheet with assets reported at fair value rather than
historical cost. Accountants have the skills and abilities to provide
financial information in a variety of formats or using a variety of
accounting policies. When the financial statements use non-GAAP
accounting policies, the accounting policies must be disclosed in the
notes to the financial statements. The accountant's report would make
reference to these accounting policies.
2. The three main areas where judgment needs to be applied are as
follows:
- Choosing accounting policies that are appropriate for the company's
situation
- Making estimates to accurately reflect the company's financial position
and results of operations
- Deciding what to disclose and how to disclose it in the notes to the
financial statements.
CANADA 1E NATHALIE JOHNSTONE
KRISTIE DEWALD CHERYL WILSON
SOLUTION MANUAL WITH TEST BANK
LATEST COMPREHENSIVE TEST PAPER
2026 COMPLETE ANSWERS ACCURATE
⫸ SOLUTIONS TO REVIEW QUESTIONS Answer: 1. There are
times when external users may want financial reports that do not follow
GAAP. For example, users may need financial statements using non-
GAAP accounting policies required for legislative or regulatory
purposes, or for contract compliance. A prospective lender may want to
receive a balance sheet with assets reported at fair value rather than
historical cost. Accountants have the skills and abilities to provide
financial information in a variety of formats or using a variety of
accounting policies. When the financial statements use non-GAAP
accounting policies, the accounting policies must be disclosed in the
notes to the financial statements. The accountant's report would make
reference to these accounting policies.
2. The three main areas where judgment needs to be applied are as
follows:
- Choosing accounting policies that are appropriate for the company's
situation
- Making estimates to accurately reflect the company's financial position
and results of operations
- Deciding what to disclose and how to disclose it in the notes to the
financial statements.
