Question

1. ASPE and IFRS both require note disclosure for related party transactions.

2. Future accounting policy changes are required note disclosure in IFRS only.

3. Both ASPE and IFRS require accrual of lawsuits that there is a 70% probability they will lose.

4. Contingent assets are not accrued in both IFRS and ASPE.

5. Both ASPE and IFRS require segmented reporting.

 

Required:Indicate whether each statement is true or false.

Answer 1

1. T 

2. T

 3.

F – IFRS requires accrual of a provision when lawsuit is probable in ASPE when lawsuit is likely and can measure. The standards do not refer to 70%. 

 4.

F – IFRS accrues contingent asset if virtually certain. ASPE never accrues a contingent asset.

 5. 

F – Only public companies or companies in the process of going public are required to provide segmented reporting in IFRS. ASPE does not require segmented reporting.