OTCPK:EMMBF - Post by User
Post by
BullorBear46on Mar 26, 2017 9:27am
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Post# 26031895
FINANCIAL POST ON BIOLOGICAL ASSETS
FINANCIAL POST ON BIOLOGICAL ASSETSLINK :
https://business.financialpost.com/investing/biological-assets-accounting-rules-are-adding-haze-to-marijuana-company-financials
In summary, the reporter points out that LP financial statements are presenting profits on inventory and on plants been grown ahead of the time of their actual sale.
If they had been growing corn, they could have sold their production ahead of time in the futures market and locked in their profits immedialely.
With marijuana there is no futures market. But this does not mean that the LPs crops will not be sold at a profit in the very near future. Considering that WEED is now having a hard time keeping up medical demand, the price per gram will probably jump with recreational demand. The only problem for LPs now is to use a reasonable estimate for their eventual price per gram sold.
Up to now the TSX has approved and found acceptable the financial reports filed by WEED and all other LPs.
Tons of marijuana in your back yard is like money in the bank !