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