79 Pages
Unlock Document

George Brown College
Solomon Chan

- are NOT rules, regulations, or laws - Intended to be generally accepted (GAAP) and universally practised (IFRS) - Without standards = impossible to compare statements Standard Setting Process in Canada Canadian Accounting Standards Board (AcSB) - Created by the Canadian Institute of Chartered Accountants (CICA) in 1991 to replace the previous Accounting Standards Committee. - Accounting Standards Oversight Council (AsSOC) oversees AcSB activities - Members of both AcSB and AsSOC come from diff. financial reporting process groups - 2 underlying premises for development of standards – Be responsive to the needs and viewpoints of the entire economic community – Operate in full public view through due process - Responsible for setting GAAP for Cdn private enterprises, not-for-profit entities, and pension plans - Accounting Standards for Private Enterprises (ASPE) - Public may have to follow the public GAAP, which is the responsibility of the Public Sector Accounting Board (PSAB) International Accounting Standards Board (IASB) - Major international standard setting body - “to develop, in the public interest, a single set of high quality, understandable and IFRS for general purpose financial statements” - IFRS must be used by public companies in Canada effective from 1 Jan 2011 - Private enterprises and not-for-profit entities have an option of using IFRS Financial Accounting Standards Board (FASB) and Securities and Exchange Commission (SEC) - FASB is the major standard setting body in the U.S. - SEC has the final authority over accounting standards in the U.S Provincial Securities Commission (Ontario Securities Commission - OSC) - Not responsible for GAAP but often require certain disclosures for public companies - Requires public companies to adopt IFRS or US GAAP (for those listed in the US market) - To oversee and monitor capital marketplace financial reporting - Ensure strict adherence to securities law/legislation - Canadian Accounting Standards Board (AcSB) is the main standard-setting body in Canada for private companies, pension plans, and not-for-profit entities (ASPE). - Public companies have to follow IFRS as established by IASB. - Private companies may choose to follow ASPE or IFRS. - Financial Accounting Standards Board (FASB) in U.S. influences IFRS. Cdn public co’s that list on U.S. stock exchanges may choose to follow U.S. GAAP Generally Accepted Accounting Principles (GAAP) GAAP hierarchy – which level should be consulted first ASPE GAAP consists of: 1. Primary sources (described by CICA handbook S1100)  CICA Handbook Sections 1400 to 3870 (including Appendices) 3
More Less

Related notes for B107

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.