Comparison of Aspe for Ifrs
Accounting Standards in Transition | A Comparison of IFRS and ASPE in Canada | | | |
TABLE OF CONTENTS
Executive Summary III
Part I Key Differences between IFRS and ASPE 1 I. Frameworks for Financial Reporting 1 II. Form and Components of the Required Financial Statements 1 III. Revenues and Expenses Recognition 2 IV. Errors, Changes in Estimates, and Changes in Accounting Policies 2 V. Cash and Receivables 3 VI. Inventories 3 VII. Financial Assets 3 VIII. Property, Plant, and Equipment 4 IX. Intangible Assets, Goodwill, Mineral Resources, and Agriculture 4 X. Applications of Fair Value: Revaluations, Impairments, and Non-current Assets Held for Sale 4 XI. Current Liabilities 5 XII. Contingencies 5 XIII. Equity 6 XIV. Complex Financial Instruments 6 XV. Earnings per Shares. 6 XVI. Accounting for Income Taxes 7 XVII. Pensions and Other Employee Future Benefits 7 XVIII. Accounting for Lease 7
Part II Summary of Opinion 8 Reasons for Adopting IFRS over ASPE 8 Pros and Cons of Having Multiple Accounting Standards 9 Advantages 9 Disadvantages 9
References 10
Executive Summary
Accounting Standards for Private Enterprises (ASPE) was developed by the Canadian Accounting Standards Board to address the need for less complex accounting standards for smaller, privately held enterprises. In contrast, IFRS was adopted by the International Accounting Standards Board (IASB) with the commitment to narrow down differences of financial statements that are prepared and presented by many entities around the world. For fiscal years on after January 2011, Canadian public companies are required to adopt IFRS, but private companies in Canada can choose either ASPE or IFRS. Consequently, the CICA Handbook covers these two standards separately: Part I for IFRS and Part II for ASPE.
Although the two standards are based on similar underlying principles, there are still significant differences found between the two. This report first
TABLE OF CONTENTS
Executive Summary III
Part I Key Differences between IFRS and ASPE 1 I. Frameworks for Financial Reporting 1 II. Form and Components of the Required Financial Statements 1 III. Revenues and Expenses Recognition 2 IV. Errors, Changes in Estimates, and Changes in Accounting Policies 2 V. Cash and Receivables 3 VI. Inventories 3 VII. Financial Assets 3 VIII. Property, Plant, and Equipment 4 IX. Intangible Assets, Goodwill, Mineral Resources, and Agriculture 4 X. Applications of Fair Value: Revaluations, Impairments, and Non-current Assets Held for Sale 4 XI. Current Liabilities 5 XII. Contingencies 5 XIII. Equity 6 XIV. Complex Financial Instruments 6 XV. Earnings per Shares. 6 XVI. Accounting for Income Taxes 7 XVII. Pensions and Other Employee Future Benefits 7 XVIII. Accounting for Lease 7
Part II Summary of Opinion 8 Reasons for Adopting IFRS over ASPE 8 Pros and Cons of Having Multiple Accounting Standards 9 Advantages 9 Disadvantages 9
References 10
Executive Summary
Accounting Standards for Private Enterprises (ASPE) was developed by the Canadian Accounting Standards Board to address the need for less complex accounting standards for smaller, privately held enterprises. In contrast, IFRS was adopted by the International Accounting Standards Board (IASB) with the commitment to narrow down differences of financial statements that are prepared and presented by many entities around the world. For fiscal years on after January 2011, Canadian public companies are required to adopt IFRS, but private companies in Canada can choose either ASPE or IFRS. Consequently, the CICA Handbook covers these two standards separately: Part I for IFRS and Part II for ASPE.
Although the two standards are based on similar underlying principles, there are still significant differences found between the two. This report first
References: Beechy, T.H. & J.E.D. Conrad. (2008). Intermediate Accounting Volume II. Fourth Edition. Toronto: McGraw-Hill Ryerson Limited. CICA, (2011). CICA Handbook Part I International Financial Reporting Standards. Toronto: Canadian Institute of Chartered Accountants. CICA, (2011). CICA Handbook Part II Accounting for Private Enterprise. Toronto: Canadian Institute of Chartered Accountants. Lo, K., & Fisher, G. (2011). Intermediate Accounting Volume II. Toronto: Pearson Canada Inc.