An entity's financial statements are mandated by the Conceptual Framework for Financial Reporting to disclose the content of the transactions in which the entity has entered. The preparers of the financial statements must assess the substance of the transaction and whether the statement of financial position should contain any resulting assets and liabilities. These provisions emerged in part as a result of concern about arrangements made by firms that excluded assets and liabilities from the financial position statement. Required: a) Explain the reasons why companies may wish to omit assets or liabilities from their statement of financial positions. b) Explain the advantages of a requirement to report substance over form.