RE:RE:RE:Canadian Weed Stocks Have a Serious Accounting ProblemJPLovely...glad to see you were able to find the article. I'll give you a hint...next time just click on the link in the post to gain access to an article that is quoted, it might save you a bit of time and no need to search.
M
JPLOVECKY wrote: Found the article myself.
If anything, this supports APH financial reporting, and calls out WEED & ACB.
Please do your DD next time before putting up an negative post on APHs board.
Thank you.
https://www.macleans.ca/economy/canadian-weed-stocks-have-a-serious-accounting-problem/
"Some companies have taken to using their own metrics to more accurately represent margins. (In the parlance of accountants, these custom numbers are called non-GAAP adjustments.) Both Canopy and Aphria do so, but the figures aren’t comparable. Canopy excludes depreciation and amortization from its cost of sales, while Aphria includes the amortization of production equipment and greenhouse infrastructure. In the end, Canopy overstates gross margins relative to Aphria, according to the Rosens. Canopy has also changed the way it reported this figure last year, adding to the confusion. Since there is no consistent reporting across the sector, and even the non-GAAP adjustments are based on management estimates, investors are still poorly served, the Rosens argue. “It’s not definitely not a more useful tool,”
Canopy declined an interview. “This seems like a debate about the structure of the rules so it’s not our place to comment,” wrote spokesperson Jordan Sinclair in an email. Carl Merton, the chief financial officer at Aphria, agrees with many aspects of the Rosens’ criticisms, but contends the company is a leader when it comes to disclosure in the industry. “We chose to solve this issue by giving an investor transparency and telling them our conclusions, so they can assess whether it’s reasonable in comparison to the rest of the industry,” he says. But until companies in the sector are consistent in how they report and the information they provide, accurate comparisons aren’t possible, he acknowledges. “Companies are making decisions within reasonable bands, but they’re not telling investors how, so investors can’t make financial statements comparable,” Merton says.