Asked by
Sultan Ansari
on Dec 16, 2024Verified
The cash basis of accounting is:
A) permitted under both IFRS and ASPE.
B) permitted under IFRS but not ASPE.
C) not permitted under IFRS but permitted under ASPE.
D) not permitted under either IFRS and ASPE.
Cash Basis
An accounting method where revenues and expenses are recognized only when cash is received or paid.
IFRS
International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) for global use in financial reporting.
ASPE
The Accounting Standards for Private Enterprises (ASPE) is a set of accounting standards for private companies in Canada, providing guidelines on financial reporting practices.
- Recognize the difference between cash and accrual basis of accounting and their implications on financial statements.
Verified Answer
ZF
Learning Objectives
- Recognize the difference between cash and accrual basis of accounting and their implications on financial statements.