On financial statements (consideration is given to the economic reality of transaction rather than the legal form) relates to which charctristic?

This relates to substance over form principle.

Substance over Form.

Could be seen in action in many transactions such as leases, sales and repurchase transactions... just to cite a few.

Hi,As mentioned earlier, substance over form. It is applicable on both assets and liabilities, For example, legally you might be owning a asset but u are not controlling it or getting benefits from it, therefore as per this concept, you dont own this asset and thus should not be recorded in your books. Same goes with liabilities. Hope i cleared the confusion.Regards 

substance over legal form...............

this could be refered to as substance over form

Substance over form accounting charterstics relate with this concept

This relates to the principal of Accounting of Substance over form

Substance Over Form which means one does have to go purely by legality but with what is visible.

1. This is relates substabce over form -Prudance .when you are assessing some transactions instaed of looking mearly legal form we will see the effect in sustance of tranaction. 

This relates to Substance over Form, meaning what is the actual underlying nature of the transaction rather than the legality of the transaction.

Financial statments are prepared on the basis of subastance over form principle. Economic substance of a transaction should be considered while presenting financial statements rather than its form to enable the user of financial statements to have a true and fair understanding of company position

For example a company may sell its stock to another with an agreement to buy it back at inflated price, the ytransaction is a form of sale but in substance it is a financing agreement between buyer and seller to enable the seller to obtain funds which he is supposed to repay alongwith cost of finance that will be difference in original price and repayment at inflated price

Similar to that is a sale and lease back agreemnt

As per IFRS both transactions should be traeted as financing and not sale and interest cost on these transaction should be accounted for over the period of finance in order to enable the user to better understand the actual transaction and its impact on financial statements.