The conceptual framework for Financial accounting and reporting plays an important role in the decisions of parties responsible for preparing General Purpose Financial Reports (GPFR) and in the development of financial reporting and accounting generally.

To some extent this question asks about the difference between US GAAP and IFRS. US GAAP is more heavily based on rules and tends to have more requirements spelled out in standards, with less reliance on the conceptual framework. However, all accounting systems combine rules and principles, and all accounting systems have standards that do not conform completely with their conceptual frameworks. You are to answer how important you think principles are and how important you think rules are.600-800 words