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What is meant by substance over form concept and how can it be applied in preparing financial statement?

Auditing Cost Accounting Financial Reporting Financial Accounting managerial accounting
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Question added by Taofeek Junaid , General Manager, Accounts/Logistics(Admin) , FMCG Industry Nigeria Ltd
Date Posted: 2014/12/06
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Saifullah Shirazi
by Saifullah Shirazi , Senior Accountant , Suraj Cotton Mills Limited

Substance over Form means Substance ( Possessing something physically ) take precedent  over Legal Form

Best example of above case is Finance Lease, if we obtain an asset on finance lease we recognize that asset in our book of account even though we are not the legal owner of that asset 

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