FULL TEST BANK FOR Modern Advanced Accounting In Canada 9th Edition Hilton Murray, Herauf Darrell.pdf

ADVANCED ACCOUNTING IN CANADA, 1
m m m m




ST CANADIAN EDITION BY NATHALIE JO
m m m m m




HNSTONE AND KRISTIE DEWALD TEST B
m m m m m




ANK|\ FULL TEST BANK WITH ALL CHAPT
m m m m m m




ERS INCLUDED|| LATEST AND COMPLETE
m m m m m




UPDATE 2025 WITH VERIFIED SOLUTIONS
m m m m




|| GUARANTEED A+m m

,1 |mPm am gm e


ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION BY N
m m m m m m m m


ATHALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL TES
m m m m m m m m


T BANK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLETE U
m m m m m m m m m


PDATE 2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
m m m m m m




Chapter 01: Introduction to Advanced Financial Accounting
m m m m m m




1.1 Describe the accounting standards used in Canada and how they apply t
m m m m m m m m m m m


o different reporting entities.
m m m



1) A private company in Canada that is closely held, has no debt, and wants t
m m m m m m m m m m m m m m


o simplify the accounting process is most likely to report under which part of the
m m m m m m m m m m m m m m


mCPA Canada Handbook?
m m



A) Part II — Accounting Standards for Private Enterprises (ASPE)
m m m m m m m m



B) Part IV — Accounting Standards for Pensions
m m m m m m



C) Part I — International Financial Reporting Standards (IFRS)
m m m m m m m



D) Part III — Accounting Standards for Not-for-Profit Organizations
m m m m m m m



ANSWER_ A m



Diff: 1 m Type: MC m




Taxonomy Category: Understanding m m




Learning Outcome: 1.1 Describe the accounting standards used in Canada and ho
m m m m m m m m m m m


w they apply to different reporting entities.
m m m m m m




2) In Canada, a private company has the choice to report under International F
m m m m m m m m m m m m


inancial Reporting Standards (IFRS) or Accounting Standards for Private Enterpri
m m m m m m m m m


ses (ASPE). Describe why the CPA Canada Handbook provides the option for pri
m m m m m m m m m m m m


vate enterprises?
m

,2 |mPm am gm e


ANSWER_ IFRS is meant to create consistency and comparability in internationa
m m m m m m m m m m


l markets. One of the limitations of IFRS is the complexity of reporting for equity
m m m m m m m m m m m m m m


minvestments that are meant to provide information to shareholders for decision-
m m m m m m m m m m


mmaking purposes. Many private companies are held by a small group of sharehol
m m m m m m m m m m m m


ders who are often involved in the running of the business or have access to that i
m m m m m m m m m m m m m m m m


nformation. As a result, the cost of applying more complex accounting policies ou
m m m m m m m m m m m m


tweighs the benefit of the information provided to this closely held group of share
m m m m m m m m m m m m m


holders. To address this, the Accounting
m m m m m



Standards Board developed the Accounting Standards for Private Enterprises to m
m m m m m m m m m m


eet the needs of private
m m m m




enterprises. Private enterprises have the option to adopt IFRS or ASPE depending
m m m m m m m m m m m m


on the needs of the financial statement users.
m m m m m m m



Diff: 2 m Type: ES m



Taxonomy Category: Understanding m m



Learning Outcome: 1.1 Describe the accounting standards used in Canada and ho
m m m m m m m m m m m


w they apply to different reporting entities.
m m m m m m




3) What are the four parts of the CPA Canada Handbook —
m m m m m m m m m m


mAccounting and which entities are they applicable to?
m m m m m m m



ANSWER_ The four parts are: m m m m



• Part I — International Financial Reporting Standards (IFRS) —
m m m m m m m m


mapplicable to publicly accountable, private, or not-for-profit entities.
m m m m m m m




• Part II — m m


mAccounting Standards for Private Enterprises (ASPE) —
m m m m m m


mapplicable to private entities. m m m



• Part III — Accounting Standards for Not-for-
m m m m m m


Profit Organizations — applicable to not-for-profit entities.
m m m m m m



• Part IV — Accounting Standards for Pension Plans —
m m m m m m m m


mapplicable to pension plans. m m m

, 3 |mPm am gm e


Diff: 1 m Type: ES m




Taxonomy Category: Remembering m m




Learning Outcome: 1.1 Describe the accounting standards used in Canada and ho
m m m m m m m m m m m


w they apply to different reporting entities.
m m m m m m




1.2 Discuss the conceptual framework for financial reporting and the genera
m m m m m m m m m


l purpose of financial reporting.
m m m m



1) In 2011, Canada adopted International Financial Reporting Standards (IFRS) for
m m m m m m m m m m


mpublicly accountable enterprises. Explain the rationale for adopting IFRS in Cana
m m m m m m m m m m


da.
ANSWER_ As the global economy expanded, the Accounting Standards Board (
m m m m m m m m m m


AcSB) chose to adopt IFRS in Canada to improve consistency and comparability i
m m m m m m m m m m m m


n the international capital markets.
m m m m




Diff: 1 m Type: ES m




Taxonomy Category: Understanding m m




Learning Outcome: 1.2 Discuss the conceptual framework for financial reporting a
m m m m m m m m m m


nd the general purpose of financial reporting.
m m m m m m




1.3 Define and identify strategic and non- m m m m m


strategic intercorporate investments made by reporting entities.
m m m m m m



1) Laliberte Products Ltd. (LPL), a public company, made several equit
m m m m m m m m m


y investments in the current year.
m m m m m




Which of the following investments would most likely be classified as an associat
m m m m m m m m m m m m


e in LPL's financial statements?
m m m m