Small and medium-sized businesses (SMEs) in Canada that publish financial statements for general use but are exempt from disclosing their financial results to the public because their shares are not traded on a public stock exchange must adhere to the accounting standards for private enterprises (ASPE).
The International Financial Reporting Standards (IFRS) for SMEs published by the International Accounting Standards Board in July 2009 served as the basis for the ASPE.
Canadian SMEs have the choice of the ASPE or IFRS. Either approach results in a set of data that is standardized and gives decision-makers confidence. They may consist of absentee owners, potential owners, lenders, creditors, vendors, suppliers, and creditors both present and potential.
All tax reporting requirements and regulations must also be followed by businesses who abide by ASPE. Owners/managers, as well as other government agencies, may also ask for further details about a business.
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