In a principles$-$based standard$-$setting system $($such as Canadian GAAP$),$ compared to

a rules$-$based approach $($such as U$.$S$.$ GAAP$),$

since it is more prescriptive, it may be easier to defend how to account for a

particular item.

there is a rule for every situation.

accountants either apply specific standards based on the conceptual framework,

or$,$ professional judgement consistent with the framework.

it is expected that professional accountants might encounter situations where

they are unable to apply the principles appropriately.