Indicate whether each statement is true or false:
1. IFRS and the CPA Canada Handbook, Part II, have equal status in Canada for financial reporting.
2. In a private corporation, the needs of external users have no impact on the company’s financial reporting objectives.
3. Canadian companies must always prepare their annual financial statements in Canadian dollars.
4. Canadian accounting standards are set by the Canada Business Corporations Act.
5. The debt and equity securities of a private company cannot be traded on public exchanges. Therefore, private companies have no external sources of financing.
6. A company may take a “big bath” in a loss year if management wishes to maximize future earnings.
7. A public company may not use a disclosed basis of accounting for external public financial reporting.
8. When an enterprise’s primary reporting objective is cash flow assessment, the enterprise will use a cash basis of reporting rather than an accrual basis.
9. Any Canadian company may use IFRS.
10. The IASB cannot require transnational corporations to use IFRS.