The Normative Structure for Reporting emphasise the importance of transactions that should be reported on the basis of their economic substance and their legal form. Explain the advantage of “substance over form” and how the financial statements would indicate that the substance of the underlying transaction varies from the legal form.
The Normative Structure for Reporting emphasise the importance of transactions that should be reported on the basis of their economic substance and their legal form. Explain the advantage of “substance over form” and how the financial statements would indicate that the substance of the underlying transaction varies from the legal form.
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter17: Other Services Provided By Audit Firms
Section: Chapter Questions
Problem 57RSCQ
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Question
The Normative Structure for Reporting emphasise the importance of transactions
that should be reported on the basis of their economic substance and their legal
form. Explain the advantage of “substance over form” and how the financial
statements would indicate that the substance of the underlying transaction varies
from the legal form.
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