A.G. BARR p.l.c. Annual Report and Accounts 2023Notes to the Accounts continued27. Retirement benefit obligations continuedAt the end of the term of the relevant lease, or earlier if the 2008 Scheme becomes fully funded to the extent that the members’ benefits can be secured with an insurancecompany, the Company has the option to repurchase the properties in the Partnership for an agreed fixed price.A “structured entity” is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when anyvoting rights relate only to administrative tasks and the relevant activities are directed by means of contractual arrangements. As outlined above, during a prior year, certainfreehold properties were transferred to a limited Partnership (a structured entity) established by the Group, the main purpose of which is to lease these properties to a Groupcompany and, as a result, to provide the Group’s 2008 scheme with a distribution of profits in the Partnership.The distribution is subject to discretion exercisable by the Group in certain circumstances; however, given that the Group has the ability to control the limited Partnershipby making an additional contribution into the 2008 Scheme, it is the view of the directors that the Group controls the limited Partnership and therefore it is treated as aconsolidated entity.The carrying value of the properties sold to the Partnership and leased back to the Company remain included on the Group’s and Company’s balance sheet and continueto be depreciated in line with the Group’s and Company’s accounting policies with the Group and Company retaining full operational control over these properties.The Group has taken advantage of the exemption conferred by Regulation 7 of the Partnerships (Accounts) Regulations 2008 and has, therefore, not appended the accountsof this qualifying partnership to these financial statements. Separate accounts for the Partnership are not required to be, and have not been, filed at UK Companies House.As part of the funding arrangement, the Company made a one-off payment to the 2008 Scheme of £20.4m to allow it to invest in the Partnership and in prior yearsthis has been treated as a reduction in the carrying value of the retirement benefit obligation.As the Partnership results are consolidated within the Group results, no balances are recognised in the consolidated statement of financial position.Financial assumptionsDiscount rateInflation assumption202320224.4%3.2%2.2%3.6%202320222223232522242326Mortality assumptionsAverage future life expectancy (in years) for a male pensioner aged 65Average future life expectancy (in years) for a female pensioner aged 65Average future life expectancy (in years) at age 65 for a male non-pensioner aged 45Average future life expectancy (in years) at age 65 for a female non-pensioner aged 45The mortality tables adopted in finalising the fair value of the liabilities are the 2019 VITA tables based on the member’s year of birth.This assumes that the expected age at death for males is 87 to 88 and for females is 89 to 91, depending on their age at 29 January 2023.190
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