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Revenue

Substance

2.1 What is substance over form?

The IASB framework outlines that accountants should apply the commercial
substance over the legal form.

This means that accountants are more interested in the business (commercial) reality
rather than what the law decrees.

What examples have we seen so far where substance over form is
applied in the accounts?

Discussion points

 Finance Leases.

 Factoring.

 Redeemable preference dividends.

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