47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 148
A.G. BARR p.l.c. Annual Report and Accounts 2025
N OTE S TO TH E
ACCO U NT S
CO N TI N U ED
1. Accounting Policies continued
Climate change considerations
The Group continuously takes steps to reduce its environmental footprint as part of the wider transition to a low carbon, climate-resilient economy. The Group has set near
and long-term science-based emission reduction targets, including net-zero by 2050.
The Group has considered the impact of these targets on its financial statements. Actions taken to date or planned for the future, including increasing the use of recycled
materials in our products and reducing the energy intensity of our operations, require changes to the way we work but at present aren’t expected to significantly alter the
Group’s cost base.
The financial impact of climate-related matters has been reflected in the Group’s business plan for future years, which, for example, are used in the Group’s impairment tests
for goodwill and intangibles. Medium to longer term climate related risks have been assessed with the potential financial impact being between 3% and 10% of turnover or
profit on moderate impact risks and between 10% and 25% for major impact risks respectively. For further details, see the TCFD and CFD disclosures on pages 39 to 47 for
more information.
Changes in accounting policy and disclosures
(a) New and amended standards adopted by the Group
A number of new or amended standards became applicable for the current reporting period and the Group had to change its accounting policies as a result of adopting
the following standards:
• Classification of Liabilities as Current or Non-current and Non-current liabilities with covenants – Amendment to IAS 1;
• Lease liability in sale and leaseback – Amendments to IFRS 16; and
• Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7.
The amendments listed above do not have a material impact on the results for the current and prior reporting periods.
(b) New standards, amendments and interpretations issued but not effective for the financial year beginning 26 January 2025 and not adopted early
Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 25 January 2025 reporting
periods and have not been early adopted by the Group. These standards, amendments or interpretations are not expected to have a material impact on the entity in the
current or future reporting periods or on foreseeable future transactions.
Consolidation – subsidiaries
Subsidiaries are entities controlled by the Company. The Company controls an entity when it is exposed, or has rights, to variable returns from its involvement with the entity
and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements
from the date over which control commences until the date on which control ceases.
On the acquisition of a business, identifiable assets and liabilities acquired are measured at their fair value. The cost of the acquisition is measured at the aggregate of the
fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued. Any contingent consideration is recognised at fair value
at the acquisition date and subsequently until it is settled. The cost of the acquisition in excess of the Group’s interest in the net fair value of the identifiable net assets
acquired is recorded as goodwill.
Non-controlling interests represent the portion of comprehensive income and equity in subsidiaries that is not attributable to the parent Company shareholders and is
presented separately from the parent shareholders’ equity in the Consolidated Balance Sheet.
Intercompany transactions, balances, income and expenses on transactions between Group companies are eliminated. Profits and losses resulting from intercompany
transactions that are recognised in net assets are also eliminated. Accounting policies of subsidiaries are consistent with those adopted by the Group.
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