Canadian private companies usually report under ASPE, Part II of the CPA Canada Handbook, but may choose IFRS (Part I). Publicly accountable enterprises must use IFRS. Not-for-profit organisations use Part III (ASNPO) or may elect IFRS, and pension plans use Part IV.
| Handbook part | Framework | Who uses it |
|---|---|---|
| Part I | International Financial Reporting Standards (IFRS) | Publicly accountable enterprises; private enterprises that choose it |
| Part II | Accounting Standards for Private Enterprises (ASPE) | Private, profit-oriented enterprises that are not publicly accountable |
| Part III | Accounting Standards for Not-for-Profit Organizations (ASNPO) | Not-for-profit organisations (which may elect Part I) |
| Part IV | Accounting Standards for Pension Plans | Pension plans |
When a private company might choose IFRS
When it expects to go public, when a parent or investor reports under IFRS and wants consistency, or when lenders or acquirers in its industry expect it. Otherwise ASPE is usually cheaper to apply and easier to read.
Where condominium corporations fit
Alberta’s Condominium Property Act requires a corporation’s statements to follow Canadian generally accepted accounting principles. Condominium corporations are not profit-oriented. Many present their statements by fund, with operating and reserve funds shown separately, as in the example on our home page. The note on significant accounting policies tells you which framework was applied.
Questions people ask
What is ASPE?
Accounting Standards for Private Enterprises, Part II of the CPA Canada Handbook – Accounting. It is the framework most Canadian private companies use, and it is simpler than IFRS in many areas.
Can a private company in Canada use IFRS?
Yes. A private enterprise may adopt either IFRS (Part I) or ASPE (Part II). The Handbook does not set conditions for that choice. Publicly accountable enterprises must use IFRS.
Sources
- CPA Canada, ASPE general adoption: frequently asked questions. Read 25 October 2026.
- Alberta King’s Printer, Condominium Property Act, RSA 2000, c C-22 — office consolidation current as of 14 May 2026; ss. 30(4), 38, 43.2, 44. Read 25 October 2026.