In Canada, as in most other countries, the distinction between the income statement (also known as the statement of comprehensive income) and the balance sheet remains the same as described earlier. However, there may be slight variations in terminology or formatting based on accounting standards or regulations specific to Canada, such as those set by the Canadian Accounting Standards Board (AcSB).
The income statement in Canada follows the same principles as elsewhere, presenting revenues, expenses, and net income or loss over a specific period. It may include additional disclosures or requirements mandated by Canadian Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), which are commonly followed in Canada.
Similarly, the balance sheet in Canada adheres to the same fundamental equation of Assets = Liabilities + Shareholders’ Equity. However, it may include specific line items or disclosures required by Canadian accounting standards or regulations, ensuring compliance with local reporting requirements.
Overall, while there may be some nuances in terminology or reporting due to Canadian accounting standards, the fundamental purpose and distinction between the income statement and the balance sheet remain consistent with global accounting principles.
The impact on financial statements of depreciable assets and depreciation.
