A guide on Micro Entity Accounting, we’ll cover what it means, what it involves and accounts preparation.
Small companies, which qualify as ‘micro-entities’, have a choice of accounting standards:
• to use the same accounting standard – FRS 102
– as larger UK companies but using a reduced disclosure regime (section 1A) within the standard,
• to apply an alternative standard – FRS 105.
Company law presumes that micro-entity accounts prepared as above give a true and fair view.