4.8 IFRS/ASPE Comparison Flashcards
What are the requirements for presenting the income statement under IFRS?
IFRS mandates a list of required items that must be presented on the face of the income statement.
How does ASPE differ from IFRS in terms of income statement presentation requirements?
ASPE has different requirements, and the specific items that must be presented are not mandated in the same way as IFRS.
How does IFRS guide the classification of expenses on the income statement?
IFRS requires entities to present an analysis of expenses based on their nature or function.
Does ASPE provide guidance on how to classify expenses?
No, ASPE does not provide specific guidance on how to classify expenses.
Entities are free to present their income statements in a manner that is transparent as long as they adhere to the required disclosures.
How are discontinued operations treated under IFRS?
Under IFRS, held-for-sale assets and liabilities are reclassified as current assets/liabilities.
How does ASPE handle discontinued operations differently from IFRS?
Under ASPE, held-for-sale assets and liabilities are classified as current or non-current depending on the nature of the asset or liability, unless they were sold before the financial statements were completed.
How does IFRS treat other comprehensive income?
IFRS requires that certain items be classified as either comprehensive income or net income, and entities must prepare a statement of comprehensive income.
How does ASPE differ from IFRS in terms of comprehensive income?
ASPE does not recognize comprehensive income. Transactions are either booked through net income or equity.
What are the requirements for presenting earnings per share (EPS) under IFRS?
Under IFRS, basic and diluted EPS must be presented in the statements.
Does ASPE require earnings per share (EPS) to be presented?
No, EPS is not mentioned under ASPE since many private entities have closely held shareholdings.
What is the requirement for the statement of retained earnings under IFRS?
IFRS requires the statement of changes in equity as a core financial statement.
How does ASPE approach the statement of retained earnings differently from IFRS?
ASPE allows the statement of retained earnings to be presented as a separate statement, and there is no requirement to present a statement of changes in shareholders’ equity, although equity accounts must still be disclosed.
How does IFRS handle accounting changes?
For all accounting policy changes under IFRS, the new policy must be reliable and more relevant.
How does ASPE handle accounting changes differently from IFRS?
ASPE requires that accounting policy changes meet the “reliable and more relevant” test, but the standard for determining this may differ slightly from IFRS.
