Canadian accounting standards are governed by the Canadian Business Corporation Act. The debt and equity securities of a private company cannot be traded on public exchanges. Therefore, private companies have no external sources of financing. When an enterprise's primary reporting objective is cash flow assessment, the enterprise will use a cash basis of reporting rather than an accrual basis.
These form the basic foundation upon which accounting measurement rests. The various ways in which financial position and the results of operations can be reported. The processs of making or recommending choices in accounting is the process of exercising Factors to consider for professional ethical judgement 4. Obligations of an entity arising from past transactions or events, the settlement of which will result in the transfer or use of assets, provision of services, or yielding of other economic benefits in the future.
AC353 Test #1
AC Test 1 Updated: The flashcards below were created by user slittle4 on FreezingBlue Flashcards. True or False True All Canadian corporations must comply with international accounting standards.
True or False False - private corporations don't IFRS were developed in order to facilitate international capital markets. True or False True The primary objective of general purpose financial reporting is to serve the information about an enterprise's financial performance. True or False True Income tax law has no impact on the accounting choices made by management. The Decision Usefulness Theory of Accounting.
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