substance over form

Definition

Accounting principle that auditors typically use to assess items based on the accounting view and not the legal one. Some items may have a different legal result so substance over form seeks to emphasize the economic view. This accounting principle helps alleviate creative accounting which often violates GAAP standards.

Use substance over form in a sentence

You may want to try and use the substance over form principle to find new ways for you to do things.

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The substance over form outlook was an interesting one to me and I paid a lot of attention to it and what it meant.

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When Rich used the substance over form perspective on looking at the books, he realized that the long-range plans of the company were far from assured.

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