For bond amortization, private companies reporting under ASPE
A)must use the effective-interest method.
B)are not allowed to use the effective-interest method.
C)may use any amortization method they wish, as long as the results do not differ materially from the effective-interest method.
D)may use any amortization method they wish, regardless of the results.

Question

Quizplus · Accepted Answer

Under ASPE (Accounting Standards for Private Enterprises) in Canada, private companies have the flexibility to choose any amortization method for bond amortization, as long as the results do not materially differ from those produced by the effective-interest method. This provides private companies with some flexibility in their accounting practices.

For Bond Amortization, Private Companies Reporting Under ASPE