Abstract:

The present article addresses, equally, to the specialists in the accounting field, managers as well as to other categories of users of the information provided for by the annual financial statements. The substance over form principle belongs to those principles that have been less approached by the specialty literature, the most known application of this principle being in the case of the financial leasing. This article intends to develop the vision on the substance over form principle, as well as to emphasize the idea that the deviation from the application of this principle, or its inadequate application results in the ˝alteration˝ of the true and fair view of the financial position and performances of an economic entity.  We will go through some examples and analyze some situations when the application of the substance over form principle is incorrect, as well as the consequences that derives from this.