Effective 2011, Canada now has a two-tiered system for determining GAAP for private versus public companies. Private companies will follow ASPE as prepared by the AcSB, and public companies will have to follow IFRS.
Private companies will be allowed to use IFRS if they choose.
Discuss, noting the pros and cons of having this type of system versus a system where there is one set of GAAP for private and public entities. Consider in your response the differences between private and public entities, including the users and type of financial information each report.