实质重于形式是会计准则的例外之一，该准则指导组织管理层分析交易或活动的经济性质，而不是已进行的实际交易。会计准则确立了这样一种事实，即交易的某些性质应按规定或指示的方式予以记录。然而，交易的某些性质需要对其性质进行详细分析，并需要管理或会计的干预。因此，应将交易的经济活动或经济效益视为交易的记录，而不仅仅是交易的发生。这可以从商业组织在研究和开发活动上的支出中观察到(Baker and Hayes, 2004)。例如，两个不同的商业组织在研发活动上的投入是相同的。虽然没有必要两个机构拥有相同的研发产品或服务，而研发工作是在这些产品或服务上进行的。虽然在财务报表方面，两个组织应该处于同一水平，但在实际中，两者处于不同的阶段。因此，会计准则或国际财务报告准则在为财务报表提供一致性方面的无能为力支持了有争议的报表。
In this report, discussion regarding uniformity of accounting standards or international financial reporting standards has been discussed. This report includes discussion regarding ability of accounting standards or financial reporting standards to bring uniformity in presentation of financial reports. In this report, analysis of accounting principle i.e. substance over form has been done as it does not support uniformity in financial report uniformity. This report includes analysis of how market condition of individual countries on the development of accounting standards. Legal structure of countries and nature of business organisations have also contributed to not confirming with uniform financial reporting with accounting standards.
Accounting standards versus uniformity in financial reports
IFRS (International financial reporting standards) has been introduced all over the world in order to bring uniformity in financial reporting. Financial reporting can be defined as the process of disclosing or presenting financial information of business organisations. IFRS is the set rules that shall be followed while preparing and presenting financial reports or statements. Bringing uniformity in accounting treatment and presentation of financial statements does not confirm uniformity in financial reports.
Substance over form and accounting standards
Substance over form is one of the exceptions of the accounting standards that direct management of organisation to analyse economic nature of transaction or activity and not actual transaction that has undertaken. Accounting standards establish the fact that certain nature of transaction should be recorded in defined or as directed manner. However there are certain natures of transactions which require detailed analysis of nature and require management or accountant’s intervention. Therefore, economic activity or economic benefit of the transaction should be considered to record transaction and not mere occurrence of transaction. This can be observed in case of expenditure on research and development activity that has been incurred by business organisations (Baker and Hayes, 2004). For example, two different business organisations have incurred same amount on research and development activity. Although it is not necessary that both the organisations having same development product or service on which research and development is been conducted. Although in terms of financial statements, both organisations should stand at same level, but in actual terms, both are at different stage. Therefore, this inability of accounting standards or International Financial Reporting Standards in providing uniformity to financial statements supports argued statement.