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- A practical guide to SEC ï¬nancial reporting and disclosures for successful regulatory crowdfunding
- Quality shareholders versus transient investors: The alarming case of product recalls
- The Health Equity Accelerator at Boston Medical Center
- Monosha Biotech: Growth Challenges of a Social Enterprise Brand
- Assessing the Value of Unifying and De-duplicating Customer Data, Spreadsheet Supplement
- Building an AI First Snack Company: A Hands-on Generative AI Exercise, Data Supplement
- Building an AI First Snack Company: A Hands-on Generative AI Exercise
- Board Director Dilemmas: The Tradeoffs of Board Selection
- Barbie: Reviving a Cultural Icon at Mattel (Abridged)
- Happiness Capital: A Hundred-Year-Old Family Business's Quest to Create Happiness
Investing in Cannabis: Understanding the Accounting and Disclosures
內容大綱
In October 2018, Canada legalized recreational use of cannabis. One year later, in late 2019, after share prices had fallen significantly from their peak, investors were looking for favourable investment opportunities in the cannabis industry. HEXO Corp. and Aurora Cannabis Inc. were two cannabis companies that traded on the Toronto Stock Exchange and followed International Financial Reporting Standards. In such a young industry, many companies were still reporting losses. Therefore, potential investors focused on a company's enterprise value (EV) and used the EV-to-revenue multiple as a useful metric for assessing a company's value. Before conducting an analysis of the two companies' values, however, investors had to consider several accounting directives issued by the International Accounting Standards that affected their financial statements. In particular, IAS 41 Agriculture posed various difficulties for Canadian cannabis companies. Investors who were interested in pursuing opportunities in Canada's cannabis industry had to pay close attention to this accounting standard and to the financial statements of individual companies.