The CPA Canada Handbook is available to most post-secondary students through their institutions subscription. Visit http://edu.knotia.ca to

Question:

The CPA Canada Handbook is available to most post-secondary students through their institution’s subscription. Visit http://edu.knotia.ca to complete this exercise. (You may need to complete this exercise on campus, or log in through your institution’s VPN portal.)

Required:

a. Go to the standards in Part II (ASPE) of the CPA Canada Handbook. View “Section 1000

Financial Statement Concepts.” Identify the paragraphs that discuss (i) the qualitative characteristics of financial statements and (ii) recognition criteria.

b. Identify the section numbers that address each of the following topics:

Generally accepted accounting principles
General standards of financial statement presentation
Balance sheet
Inventories
Property, plant, and equipment
Revenue

c. While completing part (b), did you notice any logical structure in the ASPE section numbers?

In what order are these standards numbered?

d. Go to Section 1100 on generally accepted accounting principles. What does this section identify as primary sources of GAAP (applicable to entities using ASPE)? Why are primary sources distinguished from other sources of GAAP?

e. Use the Search feature on the website. Enter “inventories” as a search term. What do you find?

Financial Statements
Financial 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... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...

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