The paper "Published Financial Statements of Sainsbury " is a good example of a finance and accounting essay. This paper seeks to present a detailed analysis covering the presentation of non-current assets in the financial statements of Sainsbury Plc. The first section is an overview of Sainsbury and the period this company presents its financial statements. This will be followed by an assessment covering on recognition, measurement, and disclosure of non-current assets in the company. The essay will then proceed to investigate whether the information provided by published financial statements on non-current assets satisfy differentiated needs of users of such financial statement.
To succeed in this analysis, it is imperative to note the prescription provided by International Accounting Standards 2007 on the presentation of financial statements. Briefly, the paper will investigate whether Sainsbury follows IAS 2007 guidelines to the latter. Overview of Sainsbury Founded in 1869, the company has managed to develop more than 1000 stores. Sainsbury is sensitive to the needs of customers and places emphasis on the nature of experience faced by customers during their shopping in the company.
This aspect is reflected in both vision and goal of the company. According to Sainsbury (2012, p. 10), the company’ s vision is “ to be the most trusted retailer, where people love to work and shop” . This company has registered success in all areas of focus i. e. food, general merchandise and clothing, complementary channels and services, property and new business, simply because of the strong culture and values. Despite intense challenges faced by retailers in 2010/11, Sainsbury remained profitable with a 6.8% growth in sales. As a public company, J Sainsbury trades its shares on London Stock Exchange.
The company’ s financial year normally ends in March, a time span of 52 weeks. Recognition, measurement, and disclosure of non-current Assets Non-current assets include property, plant, and equipment in addition to goodwill and other intangible assets. Guidelines on recognition, measurement, and disclosure of non-current assets are contained in IAS 16.
Abdul-Shukor, Z, Muhd-Kamil, I, Jagjit, K, & Md-Nor, H 2008, ‘The Value Relevance of Intangibles Non-Current Assets in Different Economic Conditions’, International Review of Business Research Papers, vol. 4, no. , pp. 316-337.
IASB 2001, Framework for the Preparation and Presentation of Financial Statements, viewed 21 November 2012, http://www.tim.ethz.ch/education/courses/courses_fs_2009/course_copfi_fs_200 9/IFRS_Framework.pdf.
IASB 2007, International Accounting Standard 1: Presentation of Financial Statements, viewed 21 November 2012, http://dipifr.info/lib_files/standards/eng/eng_ifrs_010109/IAS01.pdf
International Accounting Standards Committee Foundation and International Accounting Standards Board (eds) 2007, A Guide through International Financial Reporting Standards (IFRSs), Kluwer, London.
Sainsbury 2012, J Sainsbury plc Annual Report and Financial Statements 2012, viewed 21 November 2012, http://www.j- sainsbury.co.uk/media/649393/j_sainsbury_ara_2012.pdf.
Scott, W. R 2000, Financial accounting theory, 2nd edn, Prentice-Hall Canada Inc, Ontario.