_____________that all businesses must follow ___________________________.

Established by the ________________________________________ (AcSB)

AcSB consults the International Accounting Standards Board (IASB) who develop the International Financial Reporting Standards (IFRS) to ensure _______________________________________________.

To ensure that financial statements are __________________

To make it _________________(like you) to _____ the statements and understand what is happening in the company.

To allow you to ________________________________________ if you know that they have followed the same standards.

___________________________◦ Only those items ______________to the business

can be included on the company’s ________________. Ex. The car the owner drives to work belongs to the owner; therefore, does not belong on the balance sheet.

The ____________________________________◦ Assumes that a _____________________________

unless it is known that it will not. ◦ Ex. If a company had a bunch of business cards

and stationary with the company name printed on it and it cost $500 (value on B/S) but the company was not going to exist past the December than this asset isn’t really worth $500.

◦ *sometimes referred to as the ___________________________

____________________◦ Requires accountants to record the

________________ at their ___________________________.

◦ Ex. Land was purchased 20 years ago for

$40,000. Today the market value of the land is $180,000. The accountant must list the land on the balance sheet at $40,000.

All ___________________________must now follow ____________________________________ _________________________(IFRS)

This allows international companies to have ______________________________.

Private businesses that are not listed on the stock exchange must follow these guidelines

Or they can choose to implement IFRS

There are not a lot of differences between APSE & IFRS

In this course we will focus on ASPE reporting