Final answer:
Key differences between ASPE and IFRS regarding Accounting Changes include the handling of changes in accounting policies and estimates, with IFRS requiring a policy change only if mandated by standards or it enhances relevance and reliability, and treating errors separately from changes in estimates.
Step-by-step explanation:
The two significant differences between the Accounting Standards for Private Enterprises (ASPE) and International Financial Reporting Standards (IFRS) Handbook Sections on Accounting Changes are related to how each framework addresses changes in accounting policies and changes in accounting estimates.
Accounting policies are the specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements. Under ASPE, an entity is encouraged to apply a change in accounting policy when it results in the financial statements providing reliable and more relevant information.
By contrast, IFRS mandates that a change in accounting policy must only be applied if it is required by an IFRS standard or if it results in the financial statements providing more relevant and reliable information.
For accounting estimates, ASPE does not distinguish between changes resulting from new information or new developments and errors, whereas, under IFRS, only changes resulting from new information or developments are considered changes in estimates.
Errors are treated separately and require a retrospective restatement unless it is impracticable to determine the period-specific effects or the cumulative effect of the error.