In a principles$-$based standard$-$setting system $($such as Canadian GAAP$),$ compared to a rules$-$based approach $($such as U$.$S$.$ GAAP$),$

it is expected that professional accountants might encounter situations where they are unable to apply the principles

appropriately.

accountants either apply specific standards based on the conceptual framework, or$,$ professional judgement consistent with

the framework.

which is more prescriptive, it may be easier to defend how to account for a particular item.

there is a rule for every situation.