What is substance over form

answered on 11-Mar-23 14:21

Answer this question

latest answer

Example: Your company has purchased a property but the registration and other legal formalities are pending. Your company has the possession of the property and is using the property. So you will be showing this property as an asset in your balance sheet irrespective of whether or not the legalities are completed. This is substance over form i.e. reality over legality.

Harsh Kumar singh

CA Inter

★ 11K+

1

528

Confusions

answered on 12-Mar-23 16:27

Assets mins libality equals to capital Or asset minus libality equals to equity?

latest answer

Good Explanation!

Madhu Reddy

CA Inter

★ 4K+

5

293

Asset, liability, equity

answered on 12-Mar-23 16:28

Assest is resource which have capable to generate future economic benefit to entity Libality is a obligation Then what is euqity means... (With practical example...)

latest answer

Whatever is left with the entity after settling liabilities is equity.

Madhu Reddy

CA Inter

★ 4K+

4

346

Cum dividend price

answered on 11-Mar-23 21:25

Why we cannot determine and separate the amount of dividend include in the price of the share although we can do the same in case of debentures and bonds?

latest answer

Dividends and bonds have a fixed percentage so we can predetermine how much we are going to get..but in share we don't know how much percentage dividend is going to be

Atharv Sankliya

CA Final

★ 3K+

1

226

AS Books

answered on 10-Mar-23 09:26

How To Get AS Notes For CA Inter?

latest answer

Is updated.

Hirenkumar Ajudiya

CA Inter

★ 0

3

273

Explain this

answered on 10-Mar-23 17:23

What is substance over form In accounting??

latest answer

You will learn more examples about these in AS-19, AS-9

Dhakshana Dhakshana

CFA L2

★ 18K+

5

286

Insurance claim

answered on 20-Mar-23 10:00

In module chapter 10 illustration 5 there is abnormal item which is taken at cost in memo trading account (opening stock) Whereas in illustration 1 abnormal item is taken in opening stock at cost - written off value why so??

latest answer

To calculate normal gross profit, we need to ensure the we calculate it using normal valuations. Say some part of opening stock is sold at loss or lower profit or higher profit. This will be excluded to ensure that it does not impact the calculation. If we have written off some amount from closing stock, we add it back to bring it to normal valuation just for the purpose of GP calculation.

AKSHA MEHTA

CA Inter

★ 2K+

7

271

ESOP

answered on 09-Mar-23 20:13

Why can't we calculate the amount with respect to lapsed options directly by multiplying options lapsed and fair value. Can anyone please explain me the procedure of finding the amount to be transferred to general reserve with respect to lapsed options.

latest answer

Ok sir. Thank you sir

Umayal Lakshmanan

CA Final

★ 6K+

2

262

AS 26

answered on 09-Mar-23 19:46

In this question balance 100lacs to be written off in next 3 years in the ratio of 1:1:1. How the amount to be amortized in years 4,5 and 6 of Rs.40 lacs, Rs. 40 lacs and Rs.20 lacs is calculated?

latest answer

An enterprise acquired patent right for Rs. 400 lakhs. The product life cycle has been estimated to be 5 years and the amortization was decided in the ratio of estimated future cash flows which are as under: Year 1 Rs. 200 lacs Year 2 Rs. 200 lacs Year 3 Rs. 200 lacs Year 4 Rs. 100 lacs Year 5 Rs. 100 lacs After 3rd year, it was ascertained that the patent would have an estimated balance future life of 3 years and the estimated cash flow after 5th year is expected to be Rs. 50 lakhs. Determine the amortization under Accounting Standard 26. This is the complete question.

Nivedha Balaji

CA Final

★ 9K+

1

721

Casflow statements

answered on 10-Mar-23 00:35

I did not understood the disadvantages of direct method in casflow statements..

latest answer

Direct method doesn't reconcile busniess profits and Cash Flow. But , Indirect Method does Reconciliation of Net Profits and Ultimately Cash Flow. Hence , stakeholders may connect company's profits with cash Flow.

pullagorla sivaram

CA Inter

★ 5

2

240