The Financial Reporting Council (FRC) in the UK has set out an accounting standard for micro-entities, which

Question:

The Financial Reporting Council (FRC) in the UK has set out an accounting standard for micro-entities, which are the very smallest companies. Typically they have fewer than 10 employees. One permitted outline for a statement of financial position (balance sheet) is shown here.

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Discussion points

1 How does the statement of financial position reflect the accounting equation?

2 What further questions would you ask about the statement of financial position?

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Financial Accounting

ISBN: 9781292244471

8th Edition

Authors: Pauline Weetman

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