A manager of a medium-sized private company recently asked for your advice on the following:
I’m very confused about whether I should continue to use ASPE or change to IFRS. I need to make a recommendation to the Board next week on what we should do. Our bank is a Canadian one and we have a debt-to-equity ratio. Our two major competitors in the market place are public companies. We have no desire to go public in the near future, but the owners have been talking about possibly selling the business within the next five years.

Required:

Respond to the manager’s concern, and be sure to provide support for both sides and a recommendation.