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Question: Which of the following does company law require a statement of financial position to give?
A) A true and fair view of the profit or loss of the company for the financial year.
B) An unqualified (or clean) report on the statement of affairs of the company as at the end of the financial year.
C) A true and fair view of the statement of affairs of the company as at the end of the financial year.In the above question, It seems both option A and C seem are correct because financial statements require both income statement and balance sheet to give true and fair view.
Indeed that seems to be the case. This is taken from UK Companies Act 2005:
Companies Act individual accounts
?
(1) Companies Act individual accounts must comprise–
(a) a balance sheet as at the last day of the financial year, and
(b) a profit and loss account.
(2) The balance sheet must give a true and fair view of the state of affairs of the company as at the end of the financial year; and the profit and loss account must give a true and fair view of the profit or loss of the company for the financial year.
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