To begin we will talk briefly about the evolution of Accounting in both countries.
According to Baylin et al (1996), Accounting standard setting in Canada has undergone a number of significant structural adjustments since the late 19th century. Following Canada's emergence from its colonial status and due to the establishment of new trading partners, there was a change in the demand for accounting and the accounting standard setting process in Canada (Baylin et al, 1996).
There have also been changes in the source of authority for standard setting, the range of interests were formally included in the standard setting process and changes in relative influence of technical versus political concerns. Canada continues to have one of the few private standard-setting processes in the world. (Baylin et al, 1996).
No central source of accounting standards existed in Canada before 18646. Accounting standards were governed by common law. ...