The main objective of IFRS and ASPE is
A)To ensure compliance with the income tax act
B)To protect shareholder investment
C)To produce financial reporting that is useful for financial statement users
D)To provide specific guidelines for publicly traded companies

Question

Quizplus · Accepted Answer

The main objective of both IFRS and ASPE is to produce financial reporting that is useful for financial statement users. While compliance with income tax laws and protecting shareholder investment may be secondary objectives, the primary focus is on providing relevant and reliable financial information for decision making purposes. IFRS and ASPE apply to publicly traded companies but also to a wide range of private companies and not-for-profit organizations.

The Main Objective of IFRS and ASPE Is