All the companies and organizations small or big needs to prepare their financial statement or end expense statements. And for this purpose, they follow some principles and rules which are decided by the financial accounting standard board and are common for every type of organization or company.
Principle-Based accounting is used by several companies and organizations for maintaining their expenses details in a sophisticated and organized manner. It comes with a set of principles that are applied while preparing income statements or balance sheets. While Rules-Based accounting contains several rules for every step of making a balance sheet or financial statement and these rules are very complex with rigorous concepts.