Listing assets and liabilities in reverse order of liquidity is not permitted in Canada.

Question

Quizplus · Accepted Answer

In Canada, financial statements, including the listing of assets and liabilities, must adhere to either International Financial Reporting Standards (IFRS) or Accounting Standards for Private Enterprises (ASPE), both of which allow for flexibility in the presentation order, as long as the information is presented clearly and consistently. There is no specific rule that prohibits listing assets and liabilities in reverse order of liquidity.

Listing Assets and Liabilities in Reverse Order of Liquidity Is