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Doubt

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Doubt

  • This topic has 5 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • May 2, 2016 at 11:51 pm #313425
    abrizni10
    Member
    • Topics: 55
    • Replies: 49
    • ☆☆

    Sir I don’t understand this

    Faithful representation means that the commercial effect of a transaction must always be shown in the financial statements even this differs from legal form.

    Can u pls explain me this very clearly?

    May 3, 2016 at 8:17 am #313468
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54829
    • ☆☆☆☆☆

    This is actually known as substance over form, and is explained clearly in the free lectures 🙂

    May 3, 2016 at 8:45 am #313484
    abrizni10
    Member
    • Topics: 55
    • Replies: 49
    • ☆☆

    Yes I did, but fair representation explain that accountant being honest and Faithfull view of the business?

    May 3, 2016 at 8:57 am #313489
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54829
    • ☆☆☆☆☆

    Yes.

    May 3, 2016 at 9:06 am #313493
    abrizni10
    Member
    • Topics: 55
    • Replies: 49
    • ☆☆

    How come this involves substance over form? Both are different concept?

    May 3, 2016 at 6:05 pm #313558
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54829
    • ☆☆☆☆☆

    Yes – they are different concepts.

  • Author
    Posts
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