In Canada, public corporations are required to adopt International Financial Reporting Standards (IFRS) as accounting standards. Private
Question:
In Canada, public corporations are required to adopt International Financial Reporting Standards (IFRS) as accounting standards. Private corporations are given a choice, and must decide between two sets of accounting standards: Accounting Standards for Private Enterprises (ASPE) or IFRS.
Instructions
(a) What is the key difference between public and private companies?
(b) Who are the key users of public company financial statements? Who are the key users of private company financial statements?
(c) What is the difference between users of public company financial statements and users of private company financial statements?
(d) Why do you think public companies do not have a choice regarding which accounting standards they use?
(e) Why do you think private companies do have a choice regarding the accounting standards they use?
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
a Both public and private companies are separate legal entities owned by shareholders One of the key differences between the two types of companies is the availability of the shares Shares of public c...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
