final class instance in method arguments

If we pass a final class instance variable?

public class Test {
 public static void main(String[] args) {
  TestObject test = new TestObject();
  modifyObjectName(test);
 }

 public static void modifyObjectName(final TestObject testObj) {
  System.out.println(testObj.getName());//first
  testObj.setName("name");
  System.out.println(testObj.getName());//name

testObj = new TestObject();//throw an error.Cannot modify final object reference
 }
}

public class TestObject {

 private String mName = "first";

 public void setName(String pName) {
  mName = pName;
 }

 public String getName() {
  return mName;
 }
}