Download SPOTLIGHT ON*IFRS and ASPE

SPOTLIGHT ON IFRS and ASPE
Topic
ASPE
IFRS
Presentation of callable long- The debt can remain as long-term
term debt (due to a violations debt if the company renegotiates the
loan prior to releasing its financial
of a debt covenant)
statements.
The debt must be reported as a current liability.
Recognition of contingent
liabilities
Recognize the liability if the occurrence of the future event is “likely,”
meaning that it is highly probable and
also measurable.
Recognize the liability if the occurrence of the future event is “probable,” meaning more likely than not
and also measurable. This is a lower
standard than under ASPE.
Measurement of liabilities
Generally measured at amortized cost
using the effective-interest method or
the straight-line method.
Generally measured at amortized
cost using only the effective-interest
method.