2.6: IFRS ASPE Comparison

Question 1

How are IFRS and ASPE similar in their approach to financial reporting?

Answer 1

IFRS and ASPE are both principles-based, meaning they rely on foundational accounting principles to guide financial reporting, though they have some differences in application.

Question 2

What is the IFRS Foundation Technology Initiative focusing on?

Answer 2

The IFRS Foundation Technology Initiative is examining how big data, artificial intelligence, and automation are impacting accounting, including the standard-setting process and the consumption of financial information.

Question 3

What is the focus of the IASB’s current project on disclosures?

Answer 3

The IASB is working on targeted standards-level disclosure reviews, addressing issues related to disclosure, including providing relevant, clear, and useful information in financial statements.

Question 4

What are the three main concerns of the disclosure problem identified by the IASB?

Answer 4

Not enough relevant information, leading to inappropriate investment or lending decisions.

Irrelevant information, obscuring relevant information and reducing understandability.

Ineffective communication, reducing the understandability of financial statements.