First Capital Realty Inc. and First Pro Shopping Centres are both real estate development companies, specializing in shopping centres. However, First Capital Realty is a public company using IFRS and First Pro Shopping Centres is a private company using ASPE. Because First Capital Realty is a publicly traded company, it is required to release quarterly financial statements to its shareholders. First Pro Shopping Centres only releases its financial statements annually to its bankers and for the purposes of its annual tax filings.

Instructions

(a) Compare and contrast the steps in the accounting cycle for each company. Would you expect there to be any significant differences? Explain.

(b) Based upon what you have read in the first four chapters of this text, identify any reporting differences you would expect to see in the two companies' financial statements.