Accounting concepts and policy

Essay by anacondaUniversity, Bachelor'sA, May 2007

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IntroductionSainsbury's and Tesco's are considering making an offer for Safeway. "In approximately equal amounts of cash and Sainsbury's dosing share price on Fri 10 January 2003, would result in a value in a value per Safeway share in excess of 300p?" ---Announcement of Sainsbury's. They believe that it would need to dispose of around so stores in order to satisfy local competition issues. They belief that it would be able to deliver increased sales from the Safeway portfolio is driven by a strong core brand food offer at competitive prices, its capability to operate successfully across a number of store formats as well as its innovation with new products and services. This enhanced trading performance, combined with the significant synergies identified by Sainsbury's and Tosco's , makes this potential transaction a highly attractive opportunity to create value for shareholders and customers. Now I'm going to provide a framework of accounting concepts to explain how the importance of accounting concepts and conventions, them describe the main concepts and make the judgement of what does it work it could be improve or not .

then I will bring the relevant performance the competitor companies to make some idea of that . finally I will provide the recommendation for improvement of the policy.

AnalysisPart 1 Accounting conceptsIn order to understand the competition our company will be up against we will explain the framework of accounting concepts for evaluation and criticism.

The conventions and rules which have been developed by accountants, academics and regulators to standardise the way in which financial statements are prepared.

Accounting conceptsMoney measurement conventionBusiness entity conventionGoing concern conceptMatching conceptConsistency conceptPrudence conceptThe tune and fair conceptMoney measurement conventionFinancial statements are prepared by measuring items in monetary values. Sainsbury's sales are ?8206m in 2002. it means that transactions of these information must...