Sainsbury's Financial reporting Coursework Example | Topics and Well Written Essays - 1750 words

Sainsbury's Financial reporting - Coursework Example The company has a joint ownership with Lloyds Banking Group and also has joint ventures in properties with The British Land Company Plc and Land Securities Group Plc (Reuters, 2011). In financial year 2010 the main joint ventures of the Group were The Harvest Limited Partnership, BL Sainsbury Superstores Limited and Sainsbury Bank Plc. In all these ventures the company has a share of 50 percent. The Directors of the company are accountable for the preparation of Annual Report, Remuneration Report and relevant financial statements as per the applicable regulations. The financial statements of the Company and the Group are prepared in accordance with the International Financial Reporting Standards (IFRS) (J Sainsbury Plc, 2010). Analysis of accounting policies a) At the end of each financial year and also in the event of any impairment indication, there is a review of the carrying value of the tangible and intangible assets by the Group to identify any impairment losses. If such indica tion is revealed then the recoverable value of the asset is calculated to determine the amount of impairment loss. If the cash flows from the assets are not independent of the other assets the Group determines the recoverable amount of the cash-generating-unit (CGU). When there exists objective evidence regarding impairment loss on receivables and loans, then the carrying amount of the financial assets is reduced to the present value of the anticipated future cash flows which is obtained by discounting the financial asset using the original effective rate of interest. For 2010 the total impairment shown in the books of the company is ?23 million. This has been with respect to assets like land & buildings and fixtures &equipments. The depreciation on the assets is provided on the basis of straight line method based on the bases of 50 years or term of the lease in the case of leasehold properties and freehold building and period of 3 to 15 years for fixtures & equipments and vehicles. Good-will is shown as an asset in the balance sheet of the Group in the respective period. It is tested annually for impairment and in the event of an indication of impairment the value of good-will is carried forward at cost minus accumulated losses on impairment. The losses on impairment are shown in the income statement in the year in which it occurs. The impairment loss in respect of the â€Å"equity instruments are not reversed†. If in a following period there is a rise in the fair value of the debt instrument classified as â€Å"available for sale† and this rise can be attributed to the happening of an event, after such loss has been shown in the income statement, then it is reversed through the company’s income statement. As per IAS 36 relating to ‘Impairment of Assets’ for impairment testing each store is treated by the Group as a CGU (cash generating unit). Tesco Plc also applies the same accounting policy for the impairment losses. Like S ainsbury the tangible assets of Tesco such as plant & equipment and property are reviewed as per IAS 36 if indications are found that the carrying amount of the asset may not be realised (Tesco, 2010). b) Sainsbury reported â€Å"Derivative financial instruments† of ?20 million in its balance sheet. The business activities of the Group make it vulnerable to financial risks that may arise in the case of exchange rate fluctuations and adverse movement in the interest rates. These risks are managed by the company using derivative instruments

Intercultural communication( this is the course I'm studying, not the Assignment - 1

Intercultural communication( this is the course I'm studying, not the topic) - Assignment Example On my arrival, I noticed I did not know anyone and all those in attendance were Chinese and I do not know even know a single Spanish word. I knew this was going to be very hard for me because of the language barrier. All eyes were on me and I felt even more uncomfortable. I knew everyone expected me to introduce myself since I looked just out place. I did not know if responding with a nod would be considered disrespectful, but it was my only option. I had seen in Chinese movies that when they greeted each other they bowed as a sign of respect, I was going to collaborate with nodding with hopes of not embarrassing myself. Finally, someone came to the door and introduced herself to me in Chinese I nodded and I bowed slightly. She bowed too, and asked me to come in, in English. I felt so relieved and I explained to her that I did not know Chinese. She laughed and told me that I was in luck that she was there since no one else in the family spoke English. She explained to me that when she introduces me to the mourners it is respectful to stand up, smile, and look at them with ease and after the introduction; I could shake hands (Kao, 9). She introduced me as her cousin’s friend and explained that I did not know Chinese or anything to do with their culture. They looked at me with smiley faces with some even giggling and this made feel very much at ease. After the service, I took time to talk to her and she told me a few things about her culture including how to use chopsticks. I regretted not taking an interest to learn the language or even to know how to say hi when my friend was still alive. I learnt a lot at that burial and it created an interest to study the Chinese language. I in return taught them a few things about our culture and our food. I realized that there is always something new and interesting in other cultures. If people would take more time to learn about each