Abstract

Along with the coming of knowledge economic times, many enterprises form large groups by means of capital operations, including merger and purchase, reengineering, and stockholding. As a result, the relationships between enterprises tend to be more complex. Related parties and amounts of related transactions appear. For transactions or items that have inconsistent substances and forms, we must follow the substance-over-form convention in accounting. By this way, we can guarantee the quality of accounting information, regulate the accounting, and promote the development of market economy.

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