47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 134
A.G. BARR p.l.c. Annual Report and Accounts 2025
I N D E P E N D E NT
AU D ITO R ’ S
R E P O R T TO TH E
MEMBERS OF
A .G. B A R R P. L .C .
CO N TI N U ED
132
How the scope of our audit
responded to the key audit matter
The audit procedures we performed in respect of this matter included:
• Obtaining an understanding of and testing the relevant controls over the brand support discounts and cost accruals process;
• Meeting with the commercial teams to understand and challenge the brand support discounts in place, by assessing the movements
in the brand support accrual;
• Testing a sample of customers with characteristics of audit interest, such as customer receiving material brand support investment,
customers with material open promotions at year end, and customers with significant buying power, assessing the accuracy of
current year accruals;
• Performing a stand back assessment on judgements made in the previous year, including examining a sample of accrual releases
and assessing the additional variable consideration recognised;
• Examining a sample of key commercial contracts and joint business plans to assess whether the composition of the accrual is in line
with the underlying commercial agreement;
• Obtaining confirmations directly from customers for a sample of open accruals. In cases where no confirmation reply is received,
we performed alternative procedures involving understanding the basis for the accrual and recalculating the expected accrual
based on related sales information;
• Selecting a sample of settlements and releases made after the year-end to determine the accuracy of the accrual; and
• Assessing the appropriateness of the key sources of estimation uncertainty sensitivity disclosures made in the financial statements.
Key observations
We concluded that completeness and valuation of brand support discounts and cost accruals were appropriate.
