accounts demystified SBL. Just before we do that, though, let me explain where the rules come from and when they have to be applied. Accounting rules There are two generic types of `accounts' you might come across or want to prepare yourself: Management accounts Statutory accounts Management accounts are the accounts companies prepare for the use of their directors and management. These accounts, if they are done prop- erly, are based on the fundamental principle of accounting and the two basic concepts we discussed earlier (the accruals basis and the going con- cern assumption). There are, however, no other requirements as to how