In each case, indicate what accounting standards, IFRS or ASPE, the business is likely to use in its financial statements.

Tom Courtney, a student looking for summer employment, started a dog$-$walking service. He picks up the

dog while its owner is at work and returns it after a walk.

Joseph Counsell and Sabra Surkis each own a bike shop. They have decided to combine their businesses

and try to expand their operations to include snowboards. They expect that in the coming year they will

need funds to expand their operations.

Three chemistry professors have formed a business that uses bacteria to clean up toxic waste sites. Each

has contributed an equal amount of cash and knowledge to the venture. The use of bacteria in this

situation is experimental, and legal obligations could result.

Abdur Rahim has run a successful but small organic food store for over five years. The increased sales at

his store have made him believe the time is right to open a chain of organic food stores across the

country. Of course, this will require a substantial investment for inventory and equipment, as well as for

employees and other resources. Abdur has minimal personal savings.