Final answer:
Companies might choose ASPE because it is tailored for small to medium-sized enterprises, offering a simplified and cost-effective financial reporting framework compared to IFRS, which is more comprehensive and suitable for large or publicly traded companies.
Step-by-step explanation:
The student is asking about the reasons a company might choose to adopt the Accounting Standards for Private Enterprises (ASPE) over International Financial Reporting Standards (IFRS). The correct answer is c) ASPE is tailored for small to medium-sized enterprises (SMEs). ASPE is specifically designed to meet the financial reporting needs of privately held companies in Canada and focuses on simplifying the reporting and disclosure requirements compared to IFRS, making it more suitable for SMEs. ASPE adoption is not mandatory for publicly traded companies, nor does it provide a global framework or allow for more aggressive revenue recognition.
Adopting ASPE can be beneficial for SMEs due to its cost-effective nature, smaller scope of required disclosures, and the simplified accounting practices when compared to the complexity of IFRS. In contrast, IFRS is deployed by companies with international operations or those that are publicly listed, which requires a comprehensive set of standards that align with global financial reporting practices.