Final answer:
Incidental operations under ASPE are dealt with by assessing their materiality and impact on the financial statements. Material incidental operations should be disclosed separately, while immaterial ones can be included within general revenues or expenses to maintain transparency and consistency in financial reporting.
Step-by-step explanation:
​Under Accounting Standards for Private Enterprises (ASPE) in Canada, incidental operations are those activities that are not the main revenue-generating activities of an enterprise but may occur occasionally or on the side. When dealing with incidental operations under ASPE, it is important to determine whether the revenue and expenses from such operations should be reported separately or included within the main operations of the financial statements.
Incidental operations should be reported in the financial statements when they are material and have an impact on the understanding of the enterprise's financial position or performance. If the incidental operations are immaterial, they may be included in general revenues or expenses. However, if material, they should be disclosed separately to provide a clear understanding of their effects on the financial statements.
The treatment of incidental operations requires careful consideration of the specific circumstances and professional judgment to determine the appropriate accounting treatment. It is essential to follow the guidance within ASPE to ensure that financial reporting remains consistent and transparent for users of the financial statements.