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What is substance over form

Accountancy

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Harsh Kumar singh

Harsh Kumar singh

CA Inter

11K+

11-Mar-23 13:46

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Answers (1)

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.

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