2.7 IFRS/ASPE Key Differences
Part II of the CPA Canada Handbook does not specifically refer to a conceptual frame- work. However, Section 1000–Financial Statement Concepts contains many of the same principles as identified in the IASB Conceptual Framework. Some of the key differences are identified below:
| IFRS | ASPE |
|---|---|
| Two fundamental, qualitative characteristics are relevance and faithful representation. Comparability and understandability are considered enhancing qualitative characteristics. | Four principle qualitative characteristics are relevance, reliability, comparability, an understandability. |
| Timeliness is considered an enhancing qualitative characteristic. | Timeliness is included as a sub-element of relevance. |
| Verifiability is considered an enhancing qualitative characteristic. | Verifiability is a sub-element of reliability. |
| Faithful representation includes completeness, neutrality, and freedom from error. | Reliability includes representational faithfulness, verifiability, neutrality, and conservatism. Prudence is a concept that support neutrality. |
| Gains are included in the element “income,” and losses are included in the element “expenses.” | Gains and losses are identified as separate elements of financial statements. |
| Three types of capital maintenance concepts are identified, but no prescribed or preferred approach is indicated | Only a monetary measure of capital maintenance should be used, with no adjustment for changes in purchasing power. |
