1.  _____________that all businesses must follow ___________________________.  Established by the _________________________ _______________ (AcSB)  AcSB consults the International Accounting Standards Board (IASB) who develop the International Financial Reporting Standards (IFRS) to ensure ___________________________ ____________________.

2.  To ensure that financial statements are __________________  To make it _________________(like you) to _____ the statements and understand what is happening in the company.  To allow you to _______________________ _________________ if you know that they have followed the same standards.

3.  ___________________________ ◦ Only those items ______________to the business can be included on the company’s ________________. Ex. The car the owner drives to work belongs to the owner; therefore, does not belong on the balance sheet.

4.  The ____________________________________ ◦ Assumes that a _____________________________ unless it is known that it will not. ◦ Ex. If a company had a bunch of business cards and stationary with the company name printed on it and it cost $500 (value on B/S) but the company was not going to exist past the December than this asset isn’t really worth $500. ◦ *sometimes referred to as the ___________________________

5.  ____________________ ◦ Requires accountants to record the ________________ at their ___________________________. ◦ Ex. Land was purchased 20 years ago for $40,000. Today the market value of the land is $180,000. The accountant must list the land on the balance sheet at $40,000.

6.  All ___________________________must now follow ____________________________________ _________________________(IFRS)  This allows international companies to have ______________________________.

7.  Private businesses that are not listed on the stock exchange must follow these guidelines  Or they can choose to implement IFRS  There are not a lot of differences between APSE & IFRS  In this course we will focus on ASPE reporting