substance over form

The notion that the economic substance of a transaction, *asset, or liability takes precedence over its legal and technical form. The exploitation of narrow legal and technical interpretations of items is a typical Creative accounting mechanism to overstate *earnings and understate liabilities (e.g., through *off-balance sheet financing). Consequently, systems of *Generally Accepted Accounting Principles around the world are increasingly emphasizing the importance of substance over form.

Auditor's dictionary. 2014.

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  • substance over form — changed hwd as in Oxford as this seems to be the much more usual form ˌsubstance over ˈform noun [uncountable] ACCOUNTING the principle that what actually happens or is actually done may be different from, and sometimes more important than, the… …   Financial and business terms

  • Substance over form — is an accounting principle used, To ensure that the financial statements reflects the complete, relevant and accurate picture of the transactions and events . [cite web|title=Substance over form|author=Basic college accounting.com|date=Jun 20,… …   Wikipedia

  • substance over form — An important concept in accounting, according to which transactions and other events are accounted for by their commercial reality rather than their legal form. Off balance sheet finance and creative accounting depended on accounting according to …   Accounting dictionary

  • substance over form — An important concept in accounting, according to which transactions and other events are accounted for by their commercial reality rather than their legal form. Off balance sheet finance and creative accounting depend on acounting according to… …   Big dictionary of business and management

  • substance over form — A determination of the effect of a transaction according to the substance of the matter rather than the particular form or label adopted in designating it. Re Smiley, 35 Wash 2d 863, 216 P2d 212 …   Ballentine's law dictionary

  • form — ▪ I. form form 1 [fɔːm ǁ fɔːrm] noun [countable] an official document with spaces to answer questions and add information: • a Medicare Benefits form • We need to receive your application form by July 31. • There was no delivery address on the… …   Financial and business terms

  • Substance dependence — Substance dependency Classification and external resources ICD 10 F10.2 F19.2 ICD 9 …   Wikipedia

  • form — n 1 Form, figure, shape, conformation, configuration are comparable when they denote the disposition or arrangement of content that gives a particular aspect or appearance to a thing as distinguished from the substance of which that thing is made …   New Dictionary of Synonyms

  • Substance-induced psychosis — Classification and external resources ICD 10 F10.5 F19.5 ICD 9 …   Wikipedia

  • Over — O ver ([=o] v[ e]r), prep. [AS. ofer; akin to D. over, G. [ u]ber, OHG. ubir, ubar, Dan. over, Sw. [ o]fver, Icel. yfir, Goth. ufar, L. super, Gr. ype r, Skr. upari. [root]199. Cf. {Above}, {Eaves}, {Hyper }, {Orlop}, {Super }, {Sovereign},… …   The Collaborative International Dictionary of English

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