A substantive issue that differs from a question of form, in relation to briefs, affidavits, charges and other legal instruments, implies the essential relevance, validity or merit of the instrument, contrary to its method or style. In contracts, the term is used exclusively with respect to the documents to be provided, as is the case in a satisfactory opinion of the buyer`s legal aid. As with most “doublets,” it is suspected that it is mainly used to add rhetorical flowering, a light gravitas. On closer inspection, it turns out that this is the case. I checked some of my usual authorities – the Dictionary of Black Legislation, the Dictionary of Modern Legal Usage, even words and phrases – and I found no discussion about form and substance. If you are aware of such a discussion, please let me know. Substance over form is an accounting principle that is used “to ensure that financial statements provide a complete, relevant and accurate picture of transactions and events.” When a company practices the concept of “substance above form,” the financial statements show the general financial reality of the business (economic substance) and not the legal form of the transactions.  When accounting for commercial transactions and other events, it is necessary to measure and report on the economic impact of an event and not on its legal form. Substance through a form is essential for a reliable financial report. It is particularly important for sales acquisition, sales and sales contracts, etc. The central point of the concept is that a transaction should not be accounted for in such a way as to obscure the true intent of the transaction, which would lead readers to a company`s annual accounts to be misread. The principle strictly regulates and resolves disputes over whether workers are self-employed contractors or employees: tax legislation prohibits the billing of persons who are essentially employees in the form of independent contractors.
The question of which form can be applied to a particular case raises an objective test of the content of the work. Therefore, the substance, above the shape, is the rule. You could probably be satisfied with the substance… but why not in the substance, also give up? Satisfying the advice of the advisor to the buyer seems sufficiently complete. Substance, evidence. The essentials; it is used in opposition for form. 2. It is a general rule that it is sufficient in each question to prove the content of the question. In one case where the defendant claimed payment of the principal amount and all interest accrued and turned out to be proof that a gross amount was not equal to the full amount of interest, but accepted by the applicant as a full payment, the evidence was found to be sufficient.
2 690 Street; 1 Phil. 161. A lease agreement cannot transfer ownership of the property of the lease to the taker. However, in certain circumstances, the underwriter may be required to account for the lease asset as an asset if the underwriter is considering using the asset for a substantial portion of its useful term, or where the present value of future leases is close to the fair value of the asset. Although the lease owner does not own the lease, the lessor may be required to account for the assets as the lessor`s property on the basis of the underlying profitability of the transaction. Another example is the situation in which a company that does not have cash sells its machines to the bank and then leases the same property to the bank. This scheme is referred to as “sale and leasing.” Although legal ownership has been transferred to the bank, the underlying economic reality remains the same for the company. Under the “substance-over-form” principle, the sale and subsequent repurchase of leasing is considered a transaction.