2.4 Accounting Standards

Question 1

what is the CICA?

Answer 1

CANADIAN INSTITUTE OF CHARTED ACCOUNTANTS

Have established the standard for Canadian accountants

Question 2

Accounting Standards

Answer 2

Accountants have to follow a set of rules or standard

Question 3

ACSB

Answer 3

ACCOUNTING STANDARDS BOARD

The new governing body

Question 4

IASB

Answer 4

INTERNATIONAL ACCOUNTING STANDARDS BOARD

Question 5

GAAP

Answer 5

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

Question 6

IFRS

Answer 6

FINANCIAL REPORTING STANDARDS

For public companies only

Question 7

ASPE

Answer 7

ACCOUNTING STANDARD FOR PRIVATE ENTERPRISES

Guidelines to help private businesses make the transitions to global standards

Question 8

Business Entity Concept:

Answer 8

Long-standing principle that keeps the accounting for a business organization separate from the personal affairs of its owner

Question 9

Cost Principle

Answer 9

Requires accountants to record the value of assets at their historical cost price

Question 10

Continuing Concern Concept

Answer 10

The assumption is that a company will continue to operate normally unless it is known that it will not

This assumption frees the reader of a balance sheet

Question 11

Accounting Standards ( IFRS)
The Revaluation Model:

Answer 11

Outlines an accounting procedure that allows accountants to change the value of particular assets based on market conditions