Identify whether the items below are characteristics of a principles-based

(P)

or rules-based

(R)

accounting system:\ Provides a clear discussion of the accounting objective related to the standard\ Contains detailed application guidance\ Contains numerous exceptions to the types of firms and industries that are covered\ Involves no bright-line tests\ Contains numerous bright-line tests\ Involves a significant amount of interpretation in application\ Involves few, if any, exceptions\ Provides insufficient guidance to implement the standard\ Would not rely on extensive use of professional judgment\ Results in inconsistencies between standards

Identify whether the items below are characteristics of a principles-based (P) or rules-based (R) accounting system