This exercise should be completed after P2-17.
The CICA Handbook is available to most post-secondary students through their institution’s subscription. Visit 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 CICA 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?