ASPE and IFRS require that items be recorded only after an exchange between the company and another party

Question

Quizplus · Accepted Answer

Both ASPE (Accounting Standards for Private Enterprises) and IFRS (International Financial Reporting Standards) follow the principle of accrual accounting, which requires revenue and expenses to be recognized when they are earned or incurred, regardless of when the cash is received or paid. This means that transactions are recorded when the exchange takes place, not when cash changes hands.

ASPE and IFRS Require That Items Be Recorded Only After