How to finalize the accounts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2010 Dear all,

I would like to attract all your attention towards how to finalize the accounts and what are all factors to be considered during the preparation.

Notwithstanding that what is the outline and predetermination in terms of concepts before preparing the report.

Ashok Malhotra

Ashok Malhotra (Expert)
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04 July 2010 There are many aspects of finalisation of accounts. We should know the objective of finalisation of accounts. It may be for different / multiple purpose like:

1. For reporting the performance of the company.
2. For the purpose of taxes (Income Tax, VAT, Excise duty etc.
3. For the purpose of making any decisions that involve accounting statment analysis
4. Many more ....

You should very clearly the nature and structure of the organisation. The applicabilty of law of the land and accounting standards that are applicable. The formats of financial statements in order to know the the disclosure requirement.

Very clearly the accountant should know generally accepted accouting principles.

Depreciation, valuation of inventory, bank reconciliation, accounting policy and procedures should be known to the accountant.
These are few of the things. Any one can keep on explaining on finalisation of accounts but, unless you have a very specific query, it is very cumbersome to explain in such a limited space to explain and write down all factors

CA Ashok K Malhotra (FCA)