It has been strongly influenced by government and the banking sector.

It relies on qualitative requirements, such as 'true and fair', rather than accounting rules.

There is a strong association between accounting methods and the tax rules in place.

Information tends to be of the nature that protects creditors rather than investors.

Professionalism versus statutory control

Uniformity versus flexibility

Conservatism versus optimism

Secrecy versus transparency

The higher the degree of optimism, as opposed to conservatism, the stronger the ties with traditional measurement practice.

The higher the degree of uniformity, the lower the extent of professional judgment and the stronger the level of enforcement in applying rules and procedures.

The higher the degree of secrecy preferred, the lower the amount of disclosure.

The higher the degree of professionalism, the greater the degree of self-regulation and the lower the need for government intervention.

Outsider systems, where finance is mainly provided by external shareholders, and where the tax system is separate from the accounting system

Insider systems, where finance is mainly provided by family owners, banks and government, and the tax system dominates the accounting system

Outsider systems, where finance is mainly provided by family owners, banks and government, and the tax system is separate from the accounting system

Insider systems, where finance is mainly provided by external shareholders, and where the tax system dominates the accounting system

Increased relevance, functionality and appropriateness for all countries

Improved understanding and interpretation of financial reports by users in different countries

Increased comparability and consistency

Lower preparation costs for companies that have to produce different financial reports in different countries