Both IFRS (International Financial Reporting Standards) and ASPE (Accounting Standards for Private Enterprises) are principles-based frameworks, meaning they are based on broad principles rather than detailed rules. This approach requires professional judgment and interpretation to apply the principles to specific situations.

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Both IFRS and ASPE

Question 158

Multiple Choice

Both IFRS and ASPE:

A) provide the detailed accounting treatment for every business transaction.
B) are principles based.
C) are specific guidelines that never require professional interpretation.
D) are designed to meet the needs of publicly accountable enterprises in Canada.

Correct Answer: