Northgate Precision Ltd. has 1,800 employees, $400 million of revenue, and is owned entirely by two families; none of its shares or debt trade publicly. Which financial-reporting framework applies?
Northgate Precision Ltd. has 1,800 employees, $400 million of revenue, and is owned entirely by two families; none of its shares or debt trade publicly. Which financial-reporting framework applies?
Answer
ASPE, or IFRS if it elects to adopt it
Options - A. ASPE, or IFRS if it elects to adopt it - B. IFRS, because a company of that size and revenue is publicly accountable - C. ASPE only; IFRS is closed to it - D. IFRS, because it has more than 1,000 employees Why - A. Correct — with no public-market instruments and no fiduciary business it is not a PAE, so ASPE is available, and any non-PAE may elect IFRS instead. - B. Size is not a prong of the PAE definition. A large company with no public instruments and no fiduciary holdings is private, however large. - C. The election is the point: ASPE is the private company’s option, and IFRS is always open to it. - D. No employee threshold appears anywhere in the definition; the two prongs are public-market instruments and fiduciary holdings.
L1 §2.3; OB §4.3; CBCA s. 162–163 (verified-facts 2.1-f); CSA release 23 Apr 2025 (2.4-e)