Chapter 4: Changes in Equity

Question 1

When are you able to offset (combine asset/liabilities)

Answer 1

1. Entity plans to settle on net basis
2. Legal right to offset

Question 2

When do you need to record a contingent liability/provision

ASPE Vs IFRS

Answer 2

IFRS If it is probable >50% and measurable

ASPE Likely & measurable

Question 3

When can you record a contingent gain is IFRS vs ASPE

Answer 3

IFRS –> 95% certainity

ASPE –> NO YOU CANT

Question 4

How to measure contingencies/provisions in IFRS vs ASPE

Answer 4

IFRS –> Take midpoint
ASPE –> Take lowest

Question 5

Do you always disclose contingencies IF PROBABLE in the notes

Answer 5

YES

Question 6

ASPE VS IFRS, Does related party transactions have certain criteria?

Answer 6

in IFRS there is no guidance, just disclosure

in ASPE there is MEASUREMENT

Record at exchange value if in NORMAL course of business

Question 7

What are the 2 types of subsequent events

Answer 7

Adjusting event –> if condition existed at year-end then recognize

Non-adjusting –> if new condition does not require modifying year end then disclose in notes

Question 8

IN ASPE What are the 2 types of subsequent events

Answer 8

Existing event –> if condition existed at year-end then recognize

Non-existing –> if new condition does not require modifying year end then disclose in notes