As accounting standards become less rules-based and more principles-based,the role of professional judgement in decision-making will become less important.

Question

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As accounting standards become more principles-based, there is often greater ambiguity in how to apply those principles to specific situations, which increases the need for professional judgement in decision-making. Therefore, the role of professional judgement becomes even more important.

As Accounting Standards Become Less Rules-Based and More Principles-Based,the Role