In Canada, There Are Many Types of Business and Non-Business

question 24

Essay

In Canada, there are many types of business and non-business organizations and four different reporting standards that might be applicable.
Required:
What types of organizations are required to follow IFRS? What types of organizations may follow IFRS if they choose to do so, and how is this choice made?

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Definitions:

Social Enterprise

Businesses that operate with the primary objective of addressing social problems, combining commercial strategies with the pursuit of social and environmental goals.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for a specific task or venture, sharing both profits and risks.

Risks And Benefits

The potential negative and positive outcomes associated with any action or decision.

Principal Business Activities

The main commercial functions or operations that a company engages in to generate its revenues.