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Book Cover
Author Jagolinzer, Alan, author

Title "High" profits from accounting for cannabis plant industry / Alan Jagolinzer, Michael Miller, Steven Looi
Published London : University of Cambridge, Judge Business School, 2017
Online access available from:
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Description 1 online resource : illustrations
Series SAGE Knowledge. Cases
SAGE Knowledge. Cases
Summary On April 4, 2014, Tweed Marijuana Inc. ("Tweed") became the first federally regulated producer of cannabis in North America to have its shares traded publicly. Initially listed on the TSX Venture Exchange in Toronto, Tweed would be the first of a spate of cannabis producers to list their shares on Canadian exchanges, a decision that would require these companies to report their public financial statements under IFRS. As retail and institutional investors both began pouring investments into these cannabis companies, several oddities in these companies' public financial statements became apparent. Companies were routinely recording and reporting gross margins in excess of 100%, while companies with no revenues whatsoever were nonetheless reporting positive net incomes.This case study looks at how the application of IFRS, specifically IAS 2 Inventories and IAS 41 Agriculture, has raised questions about financial reporting in one of the world's fastest growing industries. This case aims to guide students through the 'seed-to-sale' reporting process, and ultimately, what key decisions go into deciding the fair value of a crop and how this is reflected on the financial statements
Notes Originally Published InJagolinzer, A., Miller, M., & Looi, S. (2017). "High" profits from accounting for cannabis plant industry. Cambridge: University of Cambridge, Judge Business School
Description based on XML content
Subject Tweed Marijuana Inc. -- Finance
Marijuana industry -- Canada -- Finance -- Case studies.
Marijuana industry -- North America -- Finance -- Case studies.
Stock companies -- Finance -- Case studies.
Genre/Form Case studies.
Form Electronic book
Author Looi, Steven, author
Miller, Michael, 2000- author
ISBN 1526460793
9781526460790 (ebook)