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Sir what is Final Accounts?
Is it refers to ALL financial statements (but why are they called final accounts)?
Or it refers to nominal T-ledgers accounts?
The term final accounts will normally refer to the financial statements at the end of the year.
They are called the final accounts because often the company will prepare draft accounts (i.e. rough accounts) to which they might need to make changes, before they accept them as being the final accounts that are published.
You mean that the company prepare draft financial statements (you mean all statements except statement of cash flows and Notes to SOPL) before the year-end so we can make adjustments for changes after the reporting date until they are finally authorized by the Board of directors and published to the Public.
Secondly, Final Accounts are prepared in the same way SOPL and SOFP is usually made?
Is that true?
The final accounts include the SOPL and SOFP.
It is simply that most companies will prepare rough versions first to make sure everything balances etc. before publishing them as being final. There is no law making them do this – it is simply sensible to do this in real life.
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