Premium Essay

Sainsbuyr

In: Business and Management

Submitted By shashir123
Words 2443
Pages 10
Introduction:
A UK based company J Sainsbury plc a firm which is into grocery, retailing and financial services business. The research is mainly to do the financial assessment of Sainsbury and the performance in compared to its industry competitors. Looking at the last 2 years report the company is now recovering from its passed performances. In recent years there has been many changes in the management and the board which has adopted many different approaches like expanding on retail, renovating, re-engineering of supply chain, brand repositioning, quality improvement, coat reduction and also in IT devision, which gave a lot of sales and profit to the company.
If we look in the past Sainsbury has less flow of cash flow and also in net profit. If we compare them with its competitor Tesco, it shows that Tesco is the market leader, and has a high profit margin (DataMonitor, 2010)
2. Accounting Policies:
Accounting policies are reliable and give the facts of the business which are crucial to make investment decisions for the business. If the company's profits are understated or overstated, the decisions taken by the investors appear to be false and financial resources get misallocated (Frank Wood, 2008).
Basis of preparation:
The financial statements are based on historical cost. The financial statements is in conventionality with IFRSs requires the use of assumptions, estimates and judgements that manipulate the amounts of assets and liabilities on the date of the financial statements and the reporting period amounts of revenues and expenses (J Sainbury 2009).
Subsidiaries:
Subsidiaries are all the entities over which the Group have rights to manage the operating and financial policies, which are related with shareholders voting rights. The Group income statement has all the subsidiaries from the date of acquisition. (J Sainbury 2009).
Joint ventures:
These...

Similar Documents