Sainsbury contacted by watchdog over supplier income disclosures

Supermarket chain J Sainsbury has received a letter from the Financial Reporting Council (FRC) relating to supplier income disclosures.

The watchdog has apparently written an exploratory letter to the grocery retailer with questions over its failure to include in its accounts income received from its suppliers in its annual report, the Telegraph reported.

Around one-third of the companies whose accounts are reviewed by the FRC each year receive an exploratory letter to gain further information.

A Sainsbury’s spokesman responded by saying: "We are aware of updated FRC guidance and have updated our own policies accordingly".

"We have always been comfortable with our accounting of supplier income and remain so. We have responded to the FRC to this effect."