1. There are several reasons why management may present biased information in the financial statements. Briefly identify any two such motivations.

2. Explain the difference between principles-based and rules-based accounting standards. Are IFRS and ASPE considered more principles-based or rules based? Briefly explain.

3. Accounting standards for Private Enterprises (ASPE) are geared towards fewer users who have access to additional information about the company. Although IFRS is not required for private enterprises, give a reason why a private company might choose to voluntarily adopt IFRS.