Question 5: Introduction & Conceptual framework (15 marks)

ABC Accounting Services Pty Ltd provides financial services in Perth. It has 10 shareholders and 99 full time employees. The company balance sheet is shown below. Its revenue for the year ended 30 June 2021 was $50 million.

Balance Sheet as at 30 June 2021

Assets
Current Assets	2,000,000
Non-current Assets	24,000,000
Total Assets	26,000,000
Liabilities
Current liabilities	2,000,000
Non-current liabilities	3,000,000
Total liabilities	5,000,000
Net Assets	21,000,000
Equity	21,000,000

1. Is ABC Accounting Services Pty Ltd a disclosing entity? Explain why or why not. (3 marks)

Use the table below for your answer to question 5 part (i). Expand the table as needed.

1. CanABC Accounting Services Pty Ltd produce GPFS (General Purpose Financial Statements)? Explain why or why not. (3 marks)

Use the table below for your answer to question 5 part (ii). Expand the table as needed.

1. Does ABC Accounting Services Pty Ltd need to be audited? Explain why or why not. (5 marks)

Use the table below for your answer to question 5 part (iii). Expand the table as needed.

1. Briefly explain why a private company may prefer to be classified as small? (4 marks)

Use the table below for your answer to question 5 part (iv). Expand the table as needed.