ADVANCE ACCOUNTING

Advance Accounting



Advance Accounting

Introduction

Sainsbury is engaged in retailing, financial services, and property investment businesses in the UK. The company's retail stores and website offers a range of food and non-food products primarily under the Sainsbury's brand. In addition, it provides banking services like insurance, credit cards, savings products, and loans. The company's business is organized into three operating segments: retailing (supermarkets and convenience), financial services (Sainsbury's Bank joint venture), and property investment (British Land joint venture and Land Securities joint venture). According to the company's annual report, its segment revenues solely comprise of retail business and hence the financial reporting is based on one segment (Sainsbury, 2011).

Discussion

The objectives of accounting is to provide information to owners, shareholders, banks and managers regarding the nature of the value of the things the business due to third parties, the things possessed by the business. However, its primary purpose is to provide reasonable information, based on technical records of the transactions undertaken by a private or public entity. The objective of accounting is to provide information to owners and business partners on what should and have. It can be divided into administrative and financial goal.

Consolidated Statement of Comprehensive Income

The income statement shows the income and expenses of a company over during an accounting period. It represents the type, amount and source of that income and expense components. Result of the profit and loss account is the net income or net loss. It is one of the key success indicators for the evaluation of companies and their management. In Income of the company's revenues and expenses of the last accounting period are presented. As an accounting period is usually the last calendar year, but in any case a period of twelve months. Deviations are possible only in special cases and must be clearly marked on the outside reader. Purpose of profit and loss account (income statement) is to the success of the company, expressed in net profit or loss for the year to present. The Income is in principle provided in report form. Here are the sales of last year - counted among the most important yield component in succession all other income and all expenses deducted. The result of this calculation is the net income (or net loss) this year (Aggarwal, 1996, 12-36).

In the income statement there are two possible results, whether positive or else negative. With the first one increases the wealth of the owners of the company. If you get benefits, they can reward partners immediately (dividends) or mediate (retention resulted in reserves for future outcomes), the latter appears in another concept explained in these pages, the balance sheet of the company. In contrast, a negative result reduces the wealth of the owners of the companies and retailers the value of equity (Andrews and Willett, 1997, 479-511). Sainsbury's income statement is prepared after considering all the rules and regulations of the accounting reporting standards and contains all the relevant information.

Consolidated Statement of Financial Position

The business owners and managers need ...