How do the annual report and financial statements of J Sainsbury plc meet its objectives?

The financial statements are suggested as the intermediate component between the reporting entity and report users in the reporting process. The major objective is argued as to provide useful information about the reporting entity̼ financial performance and financial position to a wide range of users. Thus they can make economic decisions as well as assess the stewardship of the entity̼ management. Generally, financial statements comprise a balance sheet, a profit loss account and a cash flow statement. The balance sheet illustrates information about the business̼ financial position while the profit and loss account tells the performance and cash flow statement indicates the liquidity.

In this essay, I’m going to focus on how this objective is met by the J Sainsbury plc. There are a wide range of user groups are interested in these statements, which includes the management, investors, employees, lenders, suppliers, customers, government and the public. Most of their need...