Final answer:
Companies may choose to adopt ASPE over IFRS due to its simplicity, cost-effectiveness, and the flexibility it offers, which can be more suited for private enterprises without international reporting needs.
Step-by-step explanation:
Companies often face decisions like whether to adopt the Accounting Standards for Private Enterprises (ASPE) or the International Financial Reporting Standards (IFRS). One reason why companies might choose to adopt ASPE is its relative simplicity and lower cost of implementation compared to IFRS, which can be more complex and suitable for large, public companies with international dealings. ASPE is tailored to meet the needs of private companies and provides more flexibility in certain areas, such as financial instrument complexity and recognition criteria. This can make it a practical and cost-effective solution for smaller businesses that do not need to meet the more rigorous reporting requirements of IFRS.