J Sainsbury updates on IFRS

Sainsbury(J) PLC
26 April 2005

26 April 2005

J Sainsbury plc updates on IFRS

     
•    IFRS is accounting change, not an operational change

•    IRFS has no effect on Business Review plans outlined on 19 October 2004

Sainsbury's will hold a presentation today to help investors and analysts
understand the changes which will impact the company's reported accounts as a
result of the introduction of International Financial Reporting Standards
(IFRS).

Roger Matthews, finance director said,  'The introduction of IFRS, although an
important accounting change, has no effect on the Business Review plans outlined
on 19 October 2004, which aims to deliver a sales led recovery.'

The IFRS adjustments will have no impact on cashflow.  Sainsbury's estimates
that under IFRS, as at 27 March 2004, net assets will be reduced by around 7%
(£350 million).   The largest adjustment arises from the change in pensions
accounting under IAS 19.  It is estimated that there will be a reduction in
underlying profit (1) of between £0 million and £10 million, for the year ended
26 March 2005.  The recently announced 2005 share plan (2) is expected to give
rise to a charge of between £10 million and £15 million in the 2005/06 accounts.

Preliminary results, prepared under UK GAAP, for the year ended 26 March 2005
will be announced on 18 May 2005.   UK GAAP will also be the basis for audited
results in the 2004/05 annual report and accounts.  The 2004/05 accounts will
also be announced under IFRS on 16 June 2005.  Thereafter, all statutory
reporting will be on an IFRS basis with the interim results being published on
18 November 2005.


Enquiries:

Investor Relations                                Media
Roger Matthews                                    Pip Wood
Lynda Ashton                                      Gillian Taylor
[phone]                              [phone]

Notes
     
1.   Underlying profit is profit before tax and before exceptional items and 
     amortisation of goodwill, calculated under UK GAAP.
     
2.   The 2005 share plan was announced on 24 March 2005 and is subject to 
     shareholder approval at the AGM on 13 July 2005.
     
3.   IFRS have been drawn up by the International Accounting Standards Board 
     (IASB) (www.iasb.org) and will come into force this year for listed 
     companies in all member countries of the European Union and in many other 
     countries around the world.
     
4.   Of the 37 standards introduced under IFRS, 7 standards have no impact on 
     Sainsbury's and 18 lead only to additional disclosure. The 12 remaining 
     standards do have an effect and Sainsbury's has elected to take a one-year 
     exemption on IAS 32 and IAS 39, in line with many other companies.
     
5.   The financial information presented in this document has been prepared
     on the basis of all IFRS, including International Accounting Standards and
     interpretations issued by the IASB and its committees, and as interpreted 
     by any regulatory bodies and industry interpretation applicable to the 
     Group.  These are subject to ongoing amendment by the IASB and subsequent 
     endorsement by the European Commission and are therefore subject to 
     possible change.  All adjustments are estimated and are subject to further 
     industry interpretation. They are unaudited.
     
6.   The presentation will start at 9:45 BST.  You will be able to listen to
     via an audio webcast.   We recommend that you register in advance for this 
     event by visiting www.j-sainsbury.co.uk and following the on-screen 
     instructions. Alternatively, please visit the website from 9:15 BST on the 
     morning of the announcement, and follow the on-screen instructions.  The 
     archive of this event will available from 16:00 BST on the day, in the form 
     of a delayed webcast.


                      This information is provided by RNS
            The company news service from the London Stock Exchange