FRS 105 requires that a complete set of financial statements of a micro-entity should include the following:

Question:

(a) A statement of financial position as at the reporting date with notes included at the foot of the statement; and

(b) An income statement for the reporting period. (See www.frc.org.uk/Our-Work/Publications/Accounting-and-Reporting-Policy/FRS-105-The-Financial-Reporting-Standard-applicab.pdf)

Required:

Critically discuss the adequacy of this requirement?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...