Sainsburys Supermarkets Essay Example | Topics and Well Written Essays - 2500 words

Sainsburys Supermarkets - Essay Example Using a combination of common management tools in a wide range of areas, from stocking its shelves full with items customers want to buy to executing on a complete revamp of its information technology and supply chain management systems, a new senior management team is revitalising the whole organisation from top to bottom. This brief history helps us analyse the period 2003 to 2006, during which Sainsbury's hit the dust with their first-ever revenues slump in history (in the year ended March 2005) and then as nimbly picked itself up and began staging a comeback. We can learn how they are doing by studying the company's annual reports which are the "official" snapshots of the whole corporation each year. Just like any other company at the mercy of its stakeholders (Freeman, 1984), Sainsbury's is expected to behave to satisfy everyone. Identify significant areas of the accounts for 2006 where judgment has been used in determining the appropriate accounting policy for the company (for example depreciation of fixed assets). Critically discuss how such judgments have materially affected the accounts in terms of valuation and profitability. There are several portions in Sainsbury's 2006 report indicating where judgment has been used to determine the appropriate accounting policies. ... From the long list of accounting policies, we note the following that in our opinion materially affected the accounts in terms of valuation and profitability: The 2006 reports are the Group's and Company's first financial statements prepared under IFRS and therefore, IFRS 1 'First-time Adoption of International Financial Reporting Standards' was applied. The last statements under UK Generally Accepted Accounting Principles ("UK GAAP") were for the 52 weeks to 26 March 2005. An explanation of the transition to IFRS is provided in Note 42. A comparison of the GAAP-based 2005 and IFRS-based 2005 reports showed that whilst non-current assets declined by almost 3 billion, total equity declined by only 33 million thanks to adjustments in net current liabilities of over 2.9 billion. This shows how numbers can surprisingly appear and vanish like magic. Early adoption of the standard Amendment to IAS 19 'Employee Benefits' is effective for annual periods beginning 1 January 2006, i.e. beginning 26 March 2006. However, Sainsbury's elected to early adopt this amendment and has applied the requirements of the amendment to the financial statements for the 52 weeks to 25 March 2006. This led to gross actuarial gains of 128 million (Note 42, p. 95), cutting the pension deficit from 672 million to only 375 million due to a deferred income tax asset. This allowed Sainsbury's to conveniently finance the pension fund and contribute towards improving employee motivation. The treatment of Subsidiaries and Goodwill allowed Sainsbury's to manufacture current year profits growth from its sale of Shaw's in 2004 by recycling 123 million of the goodwill write down from its 2005 results (p. 96), adding net 86 million to profits (See note on p. 95). Goodwill is now not allowed under

Effects Of Offshore drilling Essay Example | Topics and Well Written Essays - 750 words

Effects Of Offshore drilling - Essay Example Oil wells are regularly high rise size articles many feet beneath the surface. They are greatly mind boggling structures and the scarcest misstep might be annihilating to natures turf. When boring can start, exploratory wells are situated up to discover the accurate oil gushers. When a spot is found with a sufficient measure of oil, a subsea boring format is placed set up to guide out where the parts of the well ought to be spotted. In the following step, a drill string, which join from the beginning the stage, is utilized to make gaps in the sea depths. At the point when the opening is profound enough, metal channel packaging is situated up around the dividers of the gap to stabilize it. Finally, a conductor funnel is placed set up to keep spillage from the openings. When petroleum is hit, preparation packaging is established to permit the oil to be pumped to the surface. (George et al. 13-23) More down home oil penetrating will have no impact on the current spike in gas costs. U.S. oil creation is presently at a ten-year high, while gas costs keep on skyrocketing. A year ago alone, oil processing expanded more in U.S than in any viable nation on the planet. Creation in the Outer Continental Shelf developed by more than a third in the previous two years, and preparation in the Gulf of Mexico got 1.6 million barrels of oil for every day a year ago - a record-breaking record. Energy Information Administration projections show that an extension of seaward penetrating wouldnt lower gas costs until 2030, and afterward by just a couple of pennies for every gallon. With just two percent of the worlds saves, the U.S. commitment to the worldwide business sector could never be sufficiently high to essentially adjust world oil costs. Regardless, the House is voting to build seaward oil boring and to debilitate oversight of penetrating operations, utilizing higher gas costs as the affection. These votes