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For other transactions substance and form diverge and the choice of treatment can give different results due to non-recognition of an asset or a liability even though benefits or obligations result.
Whichever rules are the more specific should be applied, given that IAS's should be consistent with the framework. Leasing provides a good example: straight forward lease which fall squarely within the terms of IAS 17 should be accounted for without any need to refer to the framework, but where there terms are more complex, or the lease is only one element in a large series of transactions, then the framework comes into play. In addition, the framework implicitly requires that its general principle of substance over form should apply in the application of other existing rules.How does the frame work enforce the substance over from rule Its main method is to define the elements of financial substance and therefore to give rules for their recognition. The key considerations are weather a transaction has given rise to new assets and liabilities.A liability is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits. ...
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