marules-based approach (such as U.S. GAAP), compared to a principles-based approach (such as Canadian GAAP),
marules-based approach (such as U.S. GAAP), compared to a principles-based approach (such as Canadian GAAP),
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Aa 92.
Transcribed Image Text:In a rules-based approach (such as U.S. GAAP), compared to a
O since it is more prescriptive, it may be easier to defend how to account for a particular item.
O the importance of communicating the best information to users is emphasized.
principles-based approach (such as Canadian GAAP),
O companies frequently do not interpret the rules literally.
the body of knowledge is smaller.
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