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Part c Recording the substance of transactions, rather than their legal form, is an important principle in financial accounting. Abuse of this principle can lead

Part c Recording the substance of transactions, rather than their legal form, is an important principle in financial accounting. Abuse of this principle can lead to profit manipulation, non-recognition of assets and substantial debt not being recorded on the financial statement. Required: Describe ANY TWO arguments how the use of off balance sheet financing can mislead users of financial statements. (6 marks) (Total: 30 marks)

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