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Unformatted text preview: to see whether their
classification of accounting systems also holds good for intangibles. They identify two groups
of systems, both represented in our sample:
• Model 1, or the Anglo-American model, is investor and creditor-oriented; the financial
statements are used as an instrument for economic representation and decision-making. In
this model, the substance over form principle takes precedence over the conservatism
principle, and taxation has no influence. It is represented in our study by the Netherlands,
the UK, Ireland, Australia, Canada and the USA.
• Model 2, or the Continental model, is a system where the conservatism principle takes
precedence over substance over form, and taxation has a strong influence. In our sample,
this model is represented by the European Union countries (except the Netherlands and
the UK), Japan and Norway. Within this model, Scandinavian countries are likely to
behave in a similar way; in their accounting systems, neither the conservatism nor the
substance over form principle dominates.
It is therefore interesting t...
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This note was uploaded on 05/02/2013 for the course ECONOMIC economics taught by Professor Economics during the Fall '13 term at Elmont Memorial High School.
- Fall '13
- The Land