Final answer:
The phrase used is 'over time'. It means considering the long-term economic impact of a transaction in accounting and reporting.
Step-by-step explanation:
The phrase used to indicate that accounting and reporting should reflect the underlying economic essence of a transaction is over time.
Accounting and reporting should consider the long-term impact of a transaction on the financial position and performance of a company. It means looking beyond immediate cash flows and considering the economic implications over a period of time.
For example, if a company invests in new machinery, it may initially have a negative impact on cash flow due to the upfront cost. However, over time, the investment may result in increased productivity and cost savings, leading to improved financial performance.