In a rules$-$based approach $($such as$,$ U$\mathrm{.}5.$ GAAP$),$ comparfd to a principles, based approach $($such as Canadian GAAP$),$

since it is more preseriptive, it may be easier to defend how to account for a particular item. the body of knowledge lgemaller.

companies frequently dS bt interpret the rules literally

the importance of communicating the begt information to users is rmplasized