1. The IASB has authority for setting Canadian accounting standards.

2. All Canadian corporations must comply with international accounting standards

. 3. Most Canadian corporations are listed on the Toronto Stock Exchange.

4. IFRS must be used for the financial statements of every Canadian public corporation.

5. The objective of general purpose financial reporting is to serve the information needs of a wide variety of users, including lenders, shareholders, employees, and regulators.

6. The primary objective of financial accounting is to reveal all information about an enterprises financial performance.

7. If a corporation has a restrictive bond covenant that specifies a minimum times-interest-earned ratio, the corporations management will be motivated to pick discretionary accounting policies that maximize income.

8. Income tax law has no impact on the accounting choices made by management.

9. The presence of a control block can have an impact on a public companys choice of accounting policies.

10. Any Canadian company that uses U.S. GAAP must prepare its statements in U.S. dollars.

11. IFRS and the CPA Canada Handbook, Part II, have equal status in Canada for financial reporting.

12. In a private corporation, the needs of external users have no impact on the companys financial reporting objectives.

13. Canadian companies must always prepare their annual financial statements in Canadian dollars.

14. Canadian accounting standards are set by the Canada Business Corporations Act.

15. The debt and equity securities of a private company cannot be traded on public exchanges. Therefore, private companies have no external sources of financing.

16. A company may take a big bath in a loss year if management wishes to maximize future earnings.

17. A public company may not use a disclosed basis of accounting for external public financial reporting.

18. When an enterprises primary reporting objective is cash flow assessment, the enterprise will use a cash basis of reporting rather than an accrual basis.

19. Any Canadian company may use IFRS.

20. The IASB cannot require transnational corporations to use IFRS.

21. A private company based in Canada must follow the recommendations of the CPA Canada Handbook, Part II.

22. A company that reports in U.S. dollars must use U.S. accounting standards.

23. A company cannot report under Canadian accounting standards unless it uses Canadian dollars as the unit of presentation in its financial statements.

24. A Canadian company that is listed on the TSE may use U.S. accounting standards.

25. All companies listed on the NYSE must use U.S. accounting standards.

Required: Indicate whether each statement is true or false.