W3A1 - true and fair view of the a±airs of the entity...

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Economic substance BY KIMBRA PARRETT
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What is economic substance? Economic substance describes the economic (operational) reality of a corporate structure which has been put in place because of international tax optimization reasons.
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Meaning Substance over form is an accounting concept which means that the economic substance of transactions and events must be recorded in the financial statements rather than just their legal form in order to present a
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Unformatted text preview: true and fair view of the a±airs of the entity. Importance Economic substance within a business is important because the detailing on fnancial statements can beneft the business fnancially in the Future, as well as avoiding high(er) tax burdens From the IRS. http:// accounting-simplifed.com/fnancial/concepts-and-principles/substance-ove r-Form.html RE±ERENCES...
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