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In a principles-based standard-setting system (such as Canadian GAAP), compared to a rules-based approach (such as U.5. GAAP). O it is expected that professional accountants might encounter situations where they are unable to apply the principles appropriately. O there is a rule for every situation. O which is more prescriptive, it may be easier to defend how to account for a particular item. accountants either apply specific standards based on the conceptual framework, or, professional judgement consistent with the framework