Author(s)

Jiaqi Duan, Tingting Zhu

Corresponding Author

Jiaqi Duan

Abstract

With the deepening of reform and opening up in our country, the organizational form of enterprises presents diversified characteristics. Besides, the vigorous development of market economy makes the economic business of enterprises increasingly complex. This puts forward higher requirements for accounting and information disclosure of enterprises. If in practice, only according to the legal form or artificial form of transactions or events which some of them do not reflect their economic essence and economic reality, it will not be helpful or even mislead the decision-making of accounting information users. In order to effectively standardize the authenticity and reliability of accounting behavior and accurately reflect the daily real business situation of enterprises, Substance over Form Principle plays an increasingly important role. This paper focuses on the application of substance over form in accounting practice, points out some problems and puts forward some suggestions.

Keywords

Substance over form principle, accounting practice