I've just tried it in our tiny living room. I can definitely see more of my abdomen when I stepped back from it. The same in the bedroom one - could see just below my breasts when I was close up, but almost down to the pubic area when I move back to the other side of the room.
Strangely, no, I couldn't see any more of myself when I moved back from the bathroom mirror.
I like it better when I stand further back-it makes me look smaller. The background behind me also improves how I look. Brushing your teeth in front of an unforgiving mirror is an everyday trial.