2004/05 IFRS restatement

Sainsbury(J) PLC
16 June 2005


16 June 2005


J Sainsbury plc releases IFRS Accounts for 2004/05

Sainsbury's has today released its consolidated financial information for the 52
weeks ending 26 March 2005 restated under International Financial Reporting
Standards (IFRS).


The headlines from these restated accounts are that they are in line with the
statement and presentation on 26 April 2005, which identified the estimated
impacts.  These are that net assets (1) as at 28 March 2004 will reduce by £347
million, compared to £350 million previously estimated and underlying profit (2)
(3) before tax reduces by £1 million compared to the range of £(0) to £(10)
million which had been estimated.


As explained on 26 April 2005 the IFRS, adjustments have no impact on cashflow.


Net assets (1) as at 28 March 2004 reduce by £347 million (6.7%) to £4,752
million.  The largest adjustment arises from the change in pensions accounting
under IAS 19.  The net of deferred tax deficit of £495 million at 28 March 2004
(£369 million at 26 March 2005) is now presented on the group's consolidated
balance sheet.


There is a small reduction in underlying profit (2) (3) before tax of £1 million
for the year ended 26 March 2005.  The most significant impacts in the income
statement arise from IAS 19 (pensions) where there is a net reduction in the
pre-tax charge of £9 million, and IFRS2 (share based payments) which result in
an increased pre-tax charge of £8 million.  The J Sainsbury plc share plan 2005
(4) is expected to give rise to an additional charge of between £10 million and
£15 million in the 2005/06 accounts.


Full details of the restatement and accompanying financial information is
available on the website, (at http://www.j-
sainsbury.co.uk/files/presentations/pres160605/transition_ifrs.pdf) and include:


•    Financial statements (Balance Sheet, Income Statement and Statement of 
     Recognised Income and Expense) in IFRS format for 2004/05.  
     These are supported by reconciliations identifying the adjustments between 
     UK GAAP and IFRS.
•    An explanation of the way the new standards have been interpreted.
•    A summary of accounting policies under IFRS.


The introduction of IFRS, although an important accounting change, has no effect 
on the Business Review plans outlined in October 2004, which aims to deliver a 
sales-led recovery over the next three years.



Sainsbury's will announce its First Quarter Trading Statement on 23 June 2005.


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

Notes
1.    Net assets (28 March 2004) as at                                 16 June        26 April
                                                                     £ million       £ million
IAS 17 Finance leases                                                      (11)     (10) - (20)
IAS 17 Lease incentives                                                     (3)     (0) - (10)
IAS 19 Pension deficit                                                    (495)          (496)
IAS 19 Other benefits                                                       (5)     (0) - (10)
IAS 10 Dividends                                                           218            218
IAS 36 Impairment of Assets                                                (44)    (45) - (55)
IAS 12 Other deferred tax                                                   (7)            (7)
                                                                          (347)          (350)

All adjustments are net of deferred tax.


2.  Underlying profit is profit before tax and before exceptional items and 
    amortisation of goodwill, calculated under UK GAAP.


3.      Income restatement (2004/05)                                                          16 June     26 April
                                                                                            £ million    £ million
Underlying Profit
IAS 17 Finance leases                                                                             (3)    (0) - (5)
IAS 19 Pension deficit                                                                              9       5 - 10
IFRS 2 Share based payments                                                                       (8)   (5) - (10)
IAS 36 Impairment of Assets - reversal of depreciation charged under UK GAAP                        1            -


Underlying profit before tax                                                                      (1)   (0) - (10)
Tax                                                                                               (1)            -


Underlying profit after tax                                                                       (2)   (0) - (10)

Non-recurring items (net of tax)
Goodwill amortisation                                                                               4        0 - 5
IAS 36 Impairment of assets                                                                         8           10
Sale of Shaw's Supermarkets                                                                       116          116
Total non-recurring items (net of tax)                                                            128          130

4.    The J Sainsbury plc share plan 2005 was announced on 24 March 2005 and is 
subject to shareholder approval at the AGM on 13 July 2005.



5.    The restatements exclude the effect of IAS 32 and IAS 39, as Sainsbury's  
has elected to take a one year exemption on these standards, as allowed under 
IFRS 1.  IAS 32 and IAS 39 will result in income statement violations in the 
2005/06 accounts, particularly in relation to Sainsbury's Bank.



6.    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.



7.    The financial information presented in this document has been prepared
on the basis of all IFRS, including International Accounting Standards and
relevant 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.  This financial information is unaudited but has been reviewed
by our auditors, PricewaterhouseCoopers LLP.




8.    The first results reported by Sainsbury's under IFRS will be the interim 
results for the 28 weeks to 8 October 2005, and published on 16 November 2005.








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