Sources of GAAP the Canadian Principles-Based GAAP Does Not Offer Specific Standards for Specific

question 23

Essay

Sources of GAAP
The Canadian principles-based GAAP does not offer specific standards for every transaction. When specific guidance cannot be found in primary sources such as the Handbook and Accounting guidelines, what process should the accountant follow in their consultation of other sources?

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Definitions:

Height

The measurement of an object or person from base to top.

Example

A representative part or a single item from a larger whole or group, especially when used to illustrate or explain a topic.

Inherent Zero

A zero point that indicates an absence of the quantity under measurement, giving a true zero value meaning in the context.

Ratio Scale

A scale of measurement that has a meaningful zero value and allows for comparisons of absolute magnitudes and the computation of ratios.