A private company elects to report under IFRS while preparing to list. After listing, it:
A private company elects to report under IFRS while preparing to list. After listing, it:
Answer
Must continue under IFRS, since it is now a PAE
Options - A. Must continue under IFRS, since it is now a PAE - B. May switch back to ASPE if its shareholders agree - C. Chooses each year between IFRS and ASPE - D. Must use IFRS only if it lists on a foreign exchange Why - A. Correct — an entity with instruments traded in a public market is a PAE and must use CPA Canada Handbook Part I (IFRS). - B. Shareholder consent does not change the PAE test; ASPE is available only to non-PAEs. - C. Frameworks are not annual elections; a change requires justification and retrospective application. - D. Any public market, including the TSX, makes the company a PAE.
Lyryx IFA Vol 1 §10.3, §10.7; Lyryx IFA Vol 2 §12.5; OpenStax Finance §2.3; NP 58-201; NI 52-110; IAS 36; IAS 37