Supermarket Sainsbury’s has been contacted by the Financial Reporting Council (FRC), the UK’s accounting watchdog, questioning the company’s reporting of supplier income disclosures.
It is understood that approximately one third of companies whose accounts are reviewed by the watchdog are contacted with follow-up questions under new, tougher regulations. This follows the accounting scandal that hit Tesco last year, where a £263 million hole was discovered in the supermarket’s financial figures. Since then, the FRC has warned that all retailers must provide sufficient information on accounting policies.
“We are aware of updated FRC guidance and have updated our own policies accordingly,” said a Sainsbury’s spokesman, adding “We have always been comfortable with our accounting of supplier income and remain so. We have responded to the FRC to this effect.”
