Share on LinkedInShare on LinkedIn

ARTICLE · 04 AUGUST 2011

ASPE – Things You Need To Know

Many private companies that are required to issue financial statements in accordance with Canadian Generally Accepted Accounting Principles will be required to adopt Canadian Accounting Standards for Private Enterprises (ASPE) for periods beginning on or after January 1, 2011.

CanadaAccounting and Audit
Shawn Kelso
Shawn Kelso

Many private companies that are required to issue financial statements in accordance with Canadian Generally Accepted Accounting Principles will be required to adopt Canadian Accounting Standards for Private Enterprises (ASPE) for periods beginning on or after January 1, 2011. For many companies this transition will be relatively seamless since the new ASPE standards are comparable to existing standards. There are, however, some changes that may have a significant effect on a company's financial reporting practices. A few of these changes are explained below.

Under ASPE, investments in equity instruments, whose prices are quoted in an active market, will now be required to be measured at their fair value. In addition, an organization has the option of electing to measure any of its financial instruments at their fair value. The decision to take advantage of this option should not be taken lightly as it could have a significant impact on the company's financial

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from