The positive news for Canada’s accounting standard setters is that private businesses value the basic concepts of Canada’s existing accounting framework, including the traditional historic cost measures of assets,liabilities, revenues and expenses. The ability to compare financial performance with others in the same industry is also important. However, there is less support for a number of recent developments in Canadian accounting standards including the evolution towards fair value measurements and disclosures. Further, there is only a limited perceived need to be able to benchmark financial performance against public companies or foreign companies.
The private sector believes that there is accounting standards overload and that existing differential reporting options, while important, are not adequate to alleviate this concern.
- Share your thoughts whether small companies in India need simple accounting model and reporting.
- Should statutory audits be mandatory for small companies in India for e.g. companies with a turnover of less than Rs 5 crores (Rs 50 million)
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