التفاصيل البيبلوغرافية
| العنوان: |
PRIORITY OF THE ECONOMIC SUBSTANCE OF THE TRANSACTION OVER THE LEGAL FORM IN THE FINANCIAL REPORTING OF LATVIAN COMPANIES. |
| المؤلفون: |
POUHA, Jūlija |
| المصدر: |
FEB Zagreb International Odyssey Conference on Economics & Business; Jun2021, Vol. 3 Issue 1, p121-131, 11p |
| مصطلحات موضوعية: |
SUBSTANCE over form doctrine, CORPORATE accounting, FINANCIAL statements, DISPUTE resolution, TAX laws |
| مصطلحات جغرافية: |
LATVIA |
| مستخلص: |
Current international financial reporting guidelines presuppose and assume in principle that the economic substance of a transaction takes prevalence over its legal form. It means that without even reviewing each transaction through two prisms, that is, from an economic point of view and a legal point of view simultaneously, the predominance of economic substance in accounting is determined a priori. This is the manifestation of the imperative nature of the principle. The article aims to analyse the introduction, development, and current existence of the principle of the primacy of economic substance over legal form in the legislation of the Republic of Latvia and to identify conditions that could limit or facilitate the interpretation and application of the true meaning of the principle based on the results obtained. The first part of the article provides examples and questions that have become the basis for a general reflection on the essence of the primacy of economic substance over legal form. Its understanding may not be so clear due to the interdisciplinary of principle. Conceptually, the determination of the economic nature is identical to the determination of the true meaning of a transaction, and it is dealt with at different institutional levels, depending on the objectives: for the valuation and presentation of transactions in corporate accounting; for determination of the taxable base in the tax administration, and for settlement of disputes in court. This issue is particularly relevant due to the current economic formation, which is determined by the required epidemiological measures - when the normal physical circulation and movement of goods, the provision of services are restricted, resulting in rapid digitalisation of business by making economic and legal relations difficult, which turns into challenges for accountants and lawyers. The second part offers a historical analysis how the idea of the primacy of economic substance over legal form was introduced in the accounting and tax legislation of the Republic of Latvia and compares historical definitions of the principle. There were deficiencies identified in the Latvian legal framework, which complicated the practical application of the principle. There are conclusions provided on the hypothetical need to review the strengthening of the definition of the concept of the primacy of economic substance at the legislative level in Latvia's current conditions, taking into account the diversity of the objectives of the principle and user interests. [ABSTRACT FROM AUTHOR] |
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| قاعدة البيانات: |
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