CREIT (Canadian Real Estate Investment Trust) is a real-estate property management company. Its properties include retail, office, and industrial centres across Canada and in the U.S. It is a publicly accountable enterprise whose shares trade on the Toronto Stock Exchange.

First Pro Shopping Centres, which operates under the banner "Smartcentres," is also a real estate property management company. First Pro Shopping Centres is a privately held company and holds properties across Canada, with a concentration in Ontario.

Instructions

(a) One of the companies mentioned above prepares its financial statements using International Financial Reporting Standards (IFRS), while the other uses Accounting Standards for Private Enterprises (ASPE). Which company reports under IFRS? Why?

(b) Are the users of the financial statements of each company listed above different? Do you think this influences the type of accounting standards that each company uses?

(c) In light of your answer to (b) above, which company is more likely to have the more sophisticated accounting information system? Explain.

(d) Could either of the companies mentioned above maintain accounting records without using a journal or a ledger? Would this be efficient?