Which statement is correct?
A)Private enterprises must follow IFRS.
B)Publicly accountable enterprises must follow IFRS.
C)Not-for-profit organizations must follow ASPE.
D)Private enterprises must follow ASPE.

Question

Quizplus · Accepted Answer

Publicly accountable enterprises, which include publicly traded companies and financial institutions, are required to follow International Financial Reporting Standards (IFRS). Private enterprises have a choice between IFRS and Accounting Standards for Private Enterprises (ASPE), while not-for-profit organizations can choose to follow either ASPE or Accounting Standards for Not-for-Profit Organizations (ASNFPO). However, if a private enterprise has any public accountability (e.g. issuing bonds or other publicly traded securities), it must also follow IFRS.

Which Statement Is Correct