"Substance over form" effectively refers to Representational Faithfulness in the conceptual framework.

Question

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"Substance over form" is the principle that the economic reality of a transaction should be given more importance than its legal form. This means that a company should report its financial transactions based on their true substance, rather than their form. Representational faithfulness is a key characteristic of high-quality financial reporting, and it requires that financial statements fairly and accurately represent the economic reality of a company's transactions. Therefore, the two concepts are related, and "Substance over form" effectively refers to Representational Faithfulness in the conceptual framework.

"Substance Over Form" Effectively Refers to Representational Faithfulness in the Conceptual