Annual report and accounts 2023 - Flipbook - Page 156
A.G. BARR p.l.c. Annual Report and Accounts 2023
Notes to the Accounts continued
1.
Accounting Policies continued
Critical accounting judgements and key sources of estimation uncertainty
The preparation of financial statements requires management to make assumptions and estimates that affect the amounts reported for assets and liabilities as at the statement of
financial position date and the amounts reported for revenues and expenses during the year. Due to the nature of estimation, the actual outcomes may well differ from these estimates.
The directors do not consider there to be any critical accounting judgements. The key sources of estimation uncertainty at the end of the reporting period that may have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are:
Estimates
Retirement benefit obligations
The determination of any defined benefit pension scheme surplus/obligation is based on assumptions determined with independent actuarial advice. The assumptions used
include discount rate, inflation, pension increases, salary increases, the expected return on scheme assets and mortality assumptions. The material estimations are those for
which a sensitivity analysis is provided in Note 27. The directors consider that those sensitivities provided in Note 27 represent the range of possible outcomes that could
reasonably be expected to occur in the next 12 months.
Sales related rebates and discounts
The Group agrees to pay customers various amounts in the form of sales related rebates and discounts. Accruals are made for each individual promotion or rebate based
on the specific terms and conditions of the customer agreement. Management make estimates on an ongoing basis to assess customer performance and sales volume to
calculate the total amounts earned to be deducted from revenue. Based on total rebate and discount spend in the year 3% of spend would need to be omitted to result in
a material error in the value of accruals made at year end.
Climate change considerations
Climate change is a global challenge and an emerging risk to businesses, people and the environment across the world. We have a role to play in limiting warming by improving
our energy management, reducing our carbon emissions and by helping our customers and suppliers do the same. In our view, climate change does not create any further key
sources of estimation uncertainty in these financial statements. For further details, see the Risk Management and Sustainability sections of the Strategic Report.
2.
Segment reporting
The Board and senior executives have been identified as the Group's chief operating decision-makers, who review the Group's internal reporting in order to assess
performance and allocate resources.
The performance of the operating segments is assessed by reference to their gross profit.
Year ended 29 January 2023
Total revenue
Gross profit
Soft drinks
£m
Cocktail
solutions
£m
Other
£m
Total
£m
266.6
109.6
42.8
16.2
8.2
2.3
317.6
128.1
Soft drinks
£m
Cocktail
solutions
£m
Other
£m
Total
£m
230.6
103.5
36.9
14.7
1.1
0.4
268.6
118.6
Year ended 30 January 2022
Total revenue
Gross profit
154
