The new directory difference tool provides a user with graphical representation depicting differences between two directories. Two directories are identical if they have the same subdirectory structure, and files in the directories have the same content, otherwise they are different. Two files are identical if they have the same content. The resulting panel displays graphically whether the directory object is identical, different or does not exist in the counterpart directory. This tool is useful, for example, if the user wants to compare two source code versions for the same product, and see what changes have been made in the later version.