Every contrast in the midterm half, one table

The question the midterm asks most

A third of the midterm is discriminative: a rule is described and you say which framework it belongs to — IFRS, ASPE or both. Modules 1 to 6 each taught their own contrast at the end of the module. The paper does not sort them by chapter, so this lesson puts every contrast in one table and gives each row its discriminator word — the single term that settles the question.

The sweep, in the order the modules met it

Framework characteristics (L1.7). IFRS has two fundamental characteristics — relevance and faithful representation — and four enhancing ones. ASPE lists four principal characteristics: relevance, reliability, comparability, understandability. The discriminator is the word reliability (ASPE) against faithful representation (IFRS). Conservatism lives inside ASPE’s reliability; IFRS names prudence only as support for neutrality. ASPE names gains and losses as separate elements; IFRS folds them into income and expenses.

LCNRV reversal (L2.4). A write-down to net realisable value is reversed when NRV recovers, capped at the original write-down — under both frameworks. IAS 2 says so; ASPE Section 3031 is converged with it. The no-reversal regime is US GAAP, which is why it turns up as a distractor. Discriminator: none — both permit.

Impairment (L3.6). IFRS looks for indicators at every reporting date, runs one discounted test (recoverable amount = the higher of value in use and fair value less costs of disposal), and reverses a loss when the estimate improves, capped at the never-impaired carrying amount. ASPE tests only when a trigger event occurs, runs a two-step test whose first step is undiscounted cash flows against carrying amount, measures the loss as carrying amount less fair value, and never reverses. Discriminators: undiscounted and no reversal mean ASPE.

Equity statements (L4.7). IFRS presents a statement of changes in equity with a column for every equity account, including AOCI. ASPE presents a statement of retained earnings and has no concept of other comprehensive income. Discriminator: AOCI means IFRS.

Provisions (L6.7). IFRS recognises a provision when an outflow is probable — more likely than not — and, where a range of outcomes is equally likely, measures the midpoint. ASPE’s threshold is likely, a higher bar, and its range rule takes the lowest amount. IFRS recognises constructive obligations (a public commitment that creates a valid expectation); ASPE recognises decommissioning obligations only where they are legal. Discriminators: likely, lowest and legal only mean ASPE.

Three stems, worked

“A sawmill records a decommissioning provision for a site clean-up it has publicly promised but is not legally required to do.” A constructive obligation is recognised only under IFRS. IFRS.

“A company’s auditor confirms that a 2024 inventory write-down may be reversed in 2025 now that lumber prices have recovered.” Reversal of an LCNRV write-down is permitted under both frameworks. Both.

“A kiln’s undiscounted future cash flows exceed its carrying amount, so no impairment is recorded even though its value in use is lower.” Only ASPE stops at the undiscounted step; IFRS would compare carrying amount to the discounted recoverable amount. ASPE.

The method is always the same: find the discriminator word in the stem, read it off the table.