The CPA Canada Handbook - Accounting is the handbook of Canadian accounting standards. Why do companies in Canada ensure that their financial reporting is consistent with Canadian GAAP?
A) Their bank requires them to do so.
B) Their auditors require them to do so.
C) Reporting under the CPA Canada Handbook - Accounting is required by public companies' boards of directors.
D) Compliance with the CPA Canada Handbook - Accounting pronouncements is usually required by many legal statutes.

Question

Quizplus · Accepted Answer

Compliance with the CPA Canada Handbook - Accounting pronouncements is usually required by many legal statutes, such as the Canadian Business Corporations Act and the Income Tax Act. Therefore, companies in Canada ensure that their financial reporting is consistent with Canadian GAAP to comply with these legal requirements.

The CPA Canada Handbook - Accounting Is the Handbook of Canadian