First Capital Realty Inc. and the Skyline Group of Companies are both real estate investment trusts (REITs). However, First Capital Realty is a public company using IFRS and Skyline 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. Skyline only releases its financial statements annually to its bankers and for the purposes of its annual tax filings.
Instructions
(a) Would you expect there to be any significant differences between the steps in the accounting cycle for each company? 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.