Theoretical And Practical Implications of The Principle of Economic Prevalence About Legal

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 5

Year of Publication : 2020

Authors : Cristina-Valeria Laslo

10.14445/23939125/IJEMS-V7I5P102

How to Cite?

Cristina-Valeria Laslo, "Theoretical And Practical Implications of The Principle of Economic Prevalence About Legal," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 5, pp. 5-11, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I5P102

Abstract:

In this article, I have done descriptive and qualitative research on the principle of economic prevalence over the legal one in order to identify the differences between the two principles with different implications in practice. Both principles improve the quality of the information in financial statements. In normal situations, the legal form must be in accordance with the economic reality. But there are rare situations when there is no agreement between the legal form and the economic reality. One such example is financial leasing. And in this case, the entity will record in operations the transactions respecting their economic fund.

Keywords:

accounting regulations, leasing, commercial reduction, profit tax.

References:

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[2] Odile Barbe si Laurent Didelot, Comptabilite aprofondie, Mannuel&application, 22(2012) 146.
[3] SIC 15, Operational leasing – Incentives
[4] SIC 27, Evaluating the substance of Transaction
[5] IAS 17, Leasing
[6] IFRIC 4, Determining whether an agreement contains a lease (replaced by IFRS 16)
[7] OMFP 1802/2014 for the approval of the Accounting Regulations regarding the individual annual financial statements and the consolidated annual financial statements, published in M.O. no. 963 of 30 December (2014).
[8] Government Decision no. 1/2016 for the approval of the Methodological Norms for the application of Law no. 227/2015 regarding the Fiscal Code
[9] Fiscal code, Law 227/2015
[10] Directive 10/2003 of the European Parliament and of the European Council regarding the minimum health and safety requirements
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[12] www.store.ectap.ro
[13] www.conta.ase.ro