FR Issues

Question 1

Leases - Capital vs Operating

Answer 1

ASPE 3065.06
IFRS 16.05, 22, 26, 32

Under IFRS, capitalize unless; 1. term < 1 year or 2. underlying asset is low value.

Question 2

Rev Rec - Principle vs Agent
(gross vs net)

Answer 2

ASPE 3400.24
IFRS 15 B34-38

Question 3

Government Grant

Answer 3

ASPE 3800.17, 20, 22
IFRS IAS 20.07, 12, 24

Under IFRS, .10 if forgivable. .24-.27 for asset. Under ASPE, include .25 if forgivable.

Question 4

Asset Retirement Oligation

Answer 4

ASPE 3110.05-06, 14
IFRS IAS 37.14, 19, 45

Under ASPE, should state in analysis that (1) There is a reasonable estimate and (2) There is a legal obligation. Under IFRS, NO ARO, USE Decomissioning Provision instead.

Question 5

Contingent Losses

Answer 5

ASPE 3290.12, 13
IFRS IAS 37.27, 39

Under IFRS, average of range, not minimum, Legal OR Constructive.

Question 6

Non-Monetary Transactions

Answer 6

ASPE 3831.06, 07, 10
IFRS N/A

Under IFRS, if PPE: IAS 16.26, if goods: IFRS 15.66 FV of non-cash consideration recieved - opposite of ASPE.

Question 7

Inventories - Obsolescence

Answer 7

ASPE 3031.10
IFRS IAS 2.9

Question 8

Financial Instruments -
Convertible Debt

Answer 8

ASPE 3856.22
IAS 32.15

Under ASPE there is a choice, Under IFRS must split

Question 9

Impairment

Answer 9

ASPE 3063.10, 05, 06
IFRS IAS 36.08

Under IFRS, one step: CV - RA. Under ASPE, 2 steps, and only impair if indicator is present.

Question 10

Intangibles

Answer 10

ASPE 3064.12, 40, 41
IFRS IAS 38.12, 21, 24

Under ASPE, Choice between capotalize or expense costs. Under IFRS, must capitalize.

Question 11

Income Tax

Answer 11

ASPE 3465
IFRS IAS 12

Under ASPE choice between taxes payable or F/T. Under IFRS, must use deferred tax.

Question 12

Rev Rec - Payments by Vendor to Customer

Answer 12

ASPE 3400.25
IFRS 15.70, 47

Question 13

Financial Instruments - Derivatives

Answer 13

ASPE 3856. 12 (b)
IFRS 9.5.2.1

Question 14

Rev Rec - Bundled Sale

Answer 14

ASPE 3400.11
IFRS 15.22, 27, 29

Question 15

Agriculture - Biological Assets

Answer 15

ASPE 3041.09 (d), (b)(ii), 17
IFRS IAS 41.05, 12

Question 16

Rev Rec - Bill and Hold

Answer 16

ASPE 3400.09 (a), A43, A44
IFRS 15.31, 38, (c), B79-82

Question 17

Foreign Exchange Transactions

Answer 17

ASPE 1651.16
IFRS IAS 21.23 (a)

Question 18

Financial Instruments -
Ownership < 20%

Answer 18

ASPE 3856.06, 07, 11a, 12b
IFRS 9.4.1.1, 4.1.2, 4.1.3, 4.1.4

4.2.1 - All FL except derivatives: AC. 4.1.2 - Hold to maturity: AC. 4.1.2A - Might sell early: OCI. 4.1.4 - catch all FVTPL. Under ASPE, Public shares: FVNI. Private shares: AC. Bonds are debt, therefore AC. FL: AC.

Question 19

Investments - Significant Influence 20-50% Ownership

Answer 19

ASPE 3051.05, 06, 07, 08
IFRS IAS 28.05, 06, 10, 16, 17

Question 20

Joint Control

Answer 20

ASPE 3056.04, 09, 10, 12, 14, 17, 29
IFRS 11.05, 07, 15, 16, 20, 24

If it says unanimous, its a joint control issue.

Question 21

Investments - Control
Ownership > 50%

Answer 21

ASPE 1591.01, 16, 24, 26A, 27
IFRS 10.05, 07, 19, 21

Under IFRS, must consolidate. Under ASPE, 3 choices

Question 22

Investment Property

Answer 22

ASPE 3061.04, 05, 17
IFRS IAS 40.20, 32A, 79e

Include Presentation/disclosure sections.

Question 23

Assets Held for Sale

Answer 23

ASPE 3475.08, 13, 19, 33
IFRS 5.06, 07, 15, 38

Include Presentation/disclosure sections.

Question 24

Discontinued Operations

Answer 24

ASPE 3475.03(e), 30
IFRS 5.32, 33

Include Presentation/disclosure sections.