The statement of financial position
. Josie, a market trader, buys 100 shirts from a wholesaler for £10 each. During September, Josie sells 50 shirts and has 50 shirts left at the end of the month. Each shirt sells for £20 on Josie's market stall.
Can the 50 unsold shirts be recognized as an asset on Josie's statement of financial position at the end of September?
When you have considered how you would answer the question select Yes to view the correct answer.

. Tick and Bash, a firm of accountants, is looking to acquire new state of the art offices from which to operate. The new offices will give the firm a distinct advantage over its competitors due to the favourable location in the heart of the commercial district. The offices will cost £2.5m to buy and agreement has been reached on the price. All that remains is for the contracts to be drawn up, read over by each party's legal representatives and any necessary amendments made and then signed.
Can Tick and Bash recognize the new offices as an asset on their statement of financial position at this point in time?
If Tick and Bash cannot recognize the new offices as an asset in their statement of financial position right now, when can they recognize the new offices as an asset?
When you have considered how you would answer the question select Yes to view the correct answer.