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

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Part $1$

Part $2$

Provides a clear discussion of the accounting objective related to the standard

P

Contains detailed application guidance

R

Contains numerous exceptions to the types of firms and industries that are covered

R

Involves no bright$-$line tests

P

Contains numerous bright$-$line tests

R

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