alleryStart learning →A firm keeps all risks and rewards of goods it transferred and books a loan. Which consideration?
AConsistency of policy
BAccrual assumption
CSubstance over form
DMateriality of items
Answer & Solution
Correct answer: C. Substance over form
The legal transfer is ignored because the economic reality is borrowing, so substance prevails over legal form.
Keep practising AS 1 Disclosure of Accounting Policies
Browse all AS 1 Disclosure of Accounting Policies questions for CA Inter, or explore more Accounting topics.
Related questions
Under prudence, must a profit be received in cash to be recognised?Matching costs with revenues under the accrual assumption is treated how in AS 1?How do bold italic and plain type paragraphs in an AS compare in authority?Besides accounting standards, what may require some accounting policies to be disclosed?Which consideration lets a firm skip separate reporting of items that would not influence A firm provides for a probable claim at its best estimate. Which consideration is this?A firm uses the written down value method every year without switching. Which assumption iGoods worth Rs 50,000 sold in March are paid for in April, yet booked as March revenue. Wh