A popular example of which is the concept of loan provisioning wherein the IFRS provides losses on financial assets based on an incurred loss concept while the regulators provide losses based on incurred and expected loss concepts. Another contentious provision of the standards is the fair value option, which has been the subject of criticisms from the regulatory community.
In addition, too big to fail incentives have provided an irresistible motive for large banks to game any capital system, particularly since their uninsured creditors do not count on capital but on a bailout for protection.