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Definition of

commercial substance


economic reality behind piece of business the economic reality that underlies a transaction or arrangement, regardless of its legal or technical denomination. For example, a company may sell an office block and then immediately lease it back: the commercial substance may be that it has not been sold.

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Definitions of ’commercial substance’ and meaning of ’commercial substance’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’commercial substance’ and other financial terms with our online QFINANCE Financial Dictionary.

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