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Details for article 7 of 8 found articles
| Title: |
Using a folk story to generate discussion about substance over form |
| Author: |
Hayes, Rick S. Baker, C. Richard |
| Appeared in: |
Accounting education |
| Paging: | Volume 13 (2004) nr. 2 pages 267-284 |
| Year: |
2004-06 |
| Contents: |
It is a well-established principle of financial accounting that the economic substance of transactions rather than their legal form should be reflected in published accounts. Recent revelations about fraudulent and misleading accounting practices at Enron Corp. and other major US companies have prompted a debate within the American accounting profession about principles versus rules-based accounting standards. In this debate, the concept of substance over form has become increasingly relevant. It is the authors' experience that it is sometimes difficult for accounting students to determine the proper presentation of substance over form when there are complex facts involved. This instructional case presents a folk story adapted from Zen Buddhism in order to illustrate the way in which the substance of a transaction may be interpreted differently by different parties to the transaction, thereby leading to conflict and disagreement. Students are also presented with descriptions of several accounting issues focusing on special purpose entities (SPEs) and the accounting treatment of share-based compensation. Questions are raised at the end of each part of the case to help students obtain a better understanding of the concept of substance over form. |
| Publisher: |
Routledge |
| Source file: |
Elektronische Wetenschappelijke Tijdschriften |
Details for article 7 of 8 found articles
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