Explain the basis concept or assumption or principle of Accounting(All principles and assumption along with following)
1. TIMELINES PRINCIPLE
2. INDUSTRIAL PRACTICE
3. SUBSTANCE OVER FORM.
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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 true and fair view of the affairs of the entity.
Substance over form concept entails the use of judgment on the part of the preparers of the financial statements in order for them to derive the business sense from the transactions and events and to present them in a manner that best reflects their true essence. Whereas legal aspects of transactions and events are of great importance, they may have to be disregarded at times in order to provide more useful and relevant information to the users of financial statements.
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