Advanced Financial Accounting in Canada 1st Edition By Nathalie Johnstone, Kristie Dewald, Cheryl Wilson (Test Bank Latest Edition 2023-24, Grade A+, 100%

ADVANCED ACCOUNTING IN CANADA, 1S
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T CANADIAN EDITION BY NATHALIE JOH
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NSTONE AND KRISTIE DEWALD TEST BA
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NK|\ FULL TEST BANK WITH ALLCHAPTER
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S INCLUDED|| LATEST AND COMPLETE UP
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DATE 2025 WITH VERIFIEDSOLUTIONS|| G
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UARANTEED A+ k

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ADVANCED ACCOUNTING IN CANADA, 1ST CANADIAN EDITION BY NA
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THALIE JOHNSTONE AND KRISTIE DEWALD TEST BANK|\ FULL TEST B
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ANK WITH ALL CHAPTERS INCLUDED|| LATEST AND COMPLETE UPDA
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TE 2025 WITH VERIFIED SOLUTIONS|| GUARANTEEDA+
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Chapter 01: Introduction to Advanced Financial Accounting
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1.1 Describe the accounting standards used in Canada and how they apply todi
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fferent reporting entities.
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1) A private company in Canada that is closely held, has no debt, and wants tosi
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mplify the accounting process is most likely to report under which part of the CPA
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Canada Handbook? k




A) Part II — Accounting Standards for Private Enterprises (ASPE)
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B) Part IV — Accounting Standards for Pensions
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C) Part I — International Financial Reporting Standards (IFRS)
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D) Part III — Accounting Standards for Not-for-Profit Organizations
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ANSWER_ A k




Diff: 1 k Type: MC k




Taxonomy Category: Understanding k k




Learning Outcome: 1.1 Describe the accounting standards used in Canada and howth
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ey apply to different reporting entities.
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2) In Canada, a private company has the choice to report under International Fin
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ancial Reporting Standards (IFRS) or Accounting Standards for Private Enterprises (
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ASPE). Describe why the CPA Canada Handbook provides the optionfor private ent
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erprises?

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ANSWER_ IFRS is meant to create consistency and comparability in internationalm
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arkets. One of the limitations of IFRS is the complexity of reporting for equity invest
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ments that are meant to provide information to shareholders for decision-
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kmaking purposes. Many private companies are held by a small group of shareholders
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kwho are often involved in the running of the business or have access to that informati
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on. As a result, the cost of applying more complex accounting policies outweighs the
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benefit of the information provided to this closely held group of shareholders. To add
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ress this, the Accounting
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Standards Board developed the Accounting Standards for Private Enterprises tomeet
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the needs of private
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enterprises. Private enterprises have the option to adopt IFRS or ASPE dependingo
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n the needs of the financial statement users.
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Diff: 2 k Type: ES k




Taxonomy Category: Understanding k k




Learning Outcome: 1.1 Describe the accounting standards used in Canada and howth
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ey apply to different reporting entities.
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3) What are the four parts of the CPA Canada Handbook —
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Accounting andwhich entities are they applicable to?
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ANSWER_ The four parts are: k k k k




• Part I — International Financial Reporting Standards (IFRS) —
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applicableto publicly accountable, private, or not-for-profit entities.
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• Part II — Accounting Standards for Private Enterprises (ASPE) —
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applicable to private entities.
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• Part III — Accounting Standards for Not-for-Profit Organizations —
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applicable to not-for-profit entities.
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• Part IV — Accounting Standards for Pension Plans —
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applicable to pensionplans.
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Diff: 1 k Type: ES k




Taxonomy Category: Remembering k k




Learning Outcome: 1.1 Describe the accounting standards used in Canada and howth
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ey apply to different reporting entities.
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1.2 Discuss the conceptual framework for financial reporting and the generalp
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urpose of financial reporting.
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1) In 2011, Canada adopted International Financial Reporting Standards (IFRS) forp
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ublicly accountable enterprises. Explain the rationale for adopting IFRS in Canada.
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ANSWER_ As the global economy expanded, the Accounting Standards Board (Ac
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SB) chose to adopt IFRS in Canada to improve consistency and comparabilityin the i
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nternational capital markets. k k




Diff: 1 k Type: ES k




Taxonomy Category: Understanding k k




Learning Outcome: 1.2 Discuss the conceptual framework for financial reportingand
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the general purpose of financial reporting.
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1.3 Define and identify strategic and non- k k k k k


strategic intercorporate investmentsmade by reporting entities.
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1) Laliberte Products Ltd. (LPL), a public company, made several equityi
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nvestments in the current year. k k k k




Which of the following investments would most likely be classified as an associatein
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LPL's financial statements?
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