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Memo To: Scott Ginny (Ginny's Professional Print shop) From: CPA Re: Analysis of financial reporting issues and personal tax advice Ginny's Professional Print Shop (GPP)
Memo To: Scott Ginny (Ginny's Professional Print shop) From: CPA Re: Analysis of financial reporting issues and personal tax advice Ginny's Professional Print Shop (GPP) is a small privately-held company and therefore, has to make a decision on which GAAP standards to follow; IFRS or ASPE. IFRS is generally more complex and detailed and contains more disclosure requirements compared to ASPE. More resources are required to prepare financial statements under IFRS due to this and it can be costly for a small company such as GPP. ASPE in the other hand, is more appropriate for smaller companies such as GPP as disclosure requirements are less and generally it is simpler to deal with. In the case of GPP, IFRS would be overly complex, hence it seems appropriate that GPP follows ASPE. Furthermore, from the bank's perspective, this would be fine as well as both IFRS and ASPE are acceptable methods of reporting
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