5.10: IFRS/ASPE Comparison

Question 1

What are the two main techniques used to disclose additional information in financial statements?

Answer 1

Parenthetical Explanations: Presented in parentheses on the statement, adding clarity and completeness without requiring a separate note.

Notes: Used when explanations cannot be included in parentheses or would clutter the statement.

Question 2

What is the purpose of cross-references and contra items in financial statements?

Answer 2

Cross-references indicate a direct relationship between an asset and liability, helping users understand how assets relate to liabilities.

Contra items reduce the value of related accounts, providing flexibility in financial presentation.

Question 3

What specific items must be presented on the balance sheet/SFP under IFRS that are not required under ASPE?

Answer 3

IFRS: FV-OCI Investments, Accumulated OCI, investment property, and provisions.

ASPE: Government assistance receivable and investments in non-consolidated subsidiaries and joint arrangements accounted for using the cost or equity method.

Question 4

How do IFRS and ASPE differ in presenting current versus non-current liabilities on the SFP?

Answer 4

IFRS: If a company has no unconditional right to defer payment of financial liability beyond the year, it must show the liability as current, even if the debt is refinanced after the SFP date but before issue.

ASPE: If the debt is refinanced by the issue date of the financial statements, it may be presented as non-current.

Question 5

How are certain preferred shares treated on the statement of cash flows under IFRS and ASPE?

Answer 5

IFRS: Preferred shares acquired within a short period of the maturity date may be classified as cash and cash equivalents.

There is flexibility in treating interest and dividends as operating or investing activities.

ASPE: Equity investments are excluded from cash and cash equivalents.

Interest and dividends received are classified as investing activities, and dividends paid are treated as financing activities.

Question 6

What are the IFRS and ASPE standards for disclosing cash flow per share information?

Answer 6

IFRS: No prohibition on disclosure of this number.

ASPE: Prohibited—may not be disclosed.

Question 7

How do IFRS and ASPE differ in the disclosure of the date financial statements were authorized for issue?

Answer 7

IFRS: Must disclose the date the financial statements were authorized for issue.

ASPE: No requirement to disclose the authorization date.