Accountability Research Corp., which Rosen runs with his son, Mark, is warning those statements are misleading and allow companies to overstate profitability. Companies have to put a value on their marijuana plants for accounting purposes, even though pricing and future demand are not yet known. The Rosens charge that IFRS is a step backward and gives companies too much leeway when it comes to reporting. A company, for example, can record revenue if management believes there is a 50.001 per cent probability of collecting the cash. The situation makes it difficult for investors to truly gauge profitability-and it's made worse by the fact that companies use different estimates to calculate the value of their plants, and they're not always transparent …show more content…
Reporting based on an entire harvest could be misleading, as unscrupulous companies could attempt to cover up for plants lost due to powdery mildew or other pests. Share prices move based on announcements of international partnerships and plans to expand production capacity, with little or no consideration of whether companies will be able to follow through. Canopy's stock surged approximately 270 per cent in the past year and the company is worth $7.1 billion, more than Maple Leaf Foods or Air Canada. But plans, however vague, are enough for some investors.A Canadian company called IC Potash changed its name last year to Belgravia Capital International, and intends to produce specialized fertilizers for cannabis firms and form partnerships with growers in Canada and the U.S. Belgravia also proposes to use "Blockchain technology software" to track seed sales and quality.In the past six months, Belgravia’s share price skyrocketed more than 400 per cent. It has never earned any operating
Switching to IFRS will help not just companies but also investors and public globally to compare financial statements. If every country has different financial standards, if would be problematic to compare how each company stands because they are not the same.
ALEC or American Legislative Exchange Council was conceptualized and implemented during the Reagan Administration. Founded by former influential political legislative members, the purpose of this organizations existence is to ensure limited government and free market prosperity through individual liberty covenants. Historically implemented in 1981, yet, formally conceptualized 1973, its organizations founding members consisted of Illinois State Rep. Henry Hyde, conservative Paul Weyrich, Lou Barnett, and former president Ronald Reagan. For over 40 years, ALEC has developed policies covering every facet, aspect, and authoritative responsibility of state government. According to their 2012 tax documents, form 990, ALEC grossed over $9 million is gross revenues (ALEC, 2014). ALEC is funded national and global organization and individual politician contributions. The Exchange Council aims at creating and motivating the implementation of new legislative policies which allows government leader, business decision makers, and the public at large to become informed of current governmental practices. Creating nonpartisan public/private relationships between the general public and governmental leaders is the valuable philosophy that ALEC practices.
Constable Rhone is making a risky argument about the amount of hydroponics marijuana suppliers in the Winnipeg market based on the beliefs that the marijuana business has low barriers to entry, high profit margins, and the means, or tools, needed to produce marijuana can be easily acquired. Thus, Constable Rhone concludes that there must be more suppliers undiscovered in Manitoba. Constable Rhone is also making an argument of possibility because the assumed probability may be drastically different from reality. Constable Rhone is assuming that there must be more marijuana suppliers because marijuana easy to produce and sell. However, the argument is still incorrect even if Constable Rhone is right about the facts on producing and selling marijuana.
Accountability….What does it mean? Well this past month e lost two soldiers who are a part of our unit and voice of our unit pass away. Accountability is important and should not be taken lightly… A soldier lost his life a couple weeks ago, due to lack of accountability, and it hurt a lot of people. For so many reasons accountability is important, for example. Knowing where your soldiers are at all times helps to know what they’re doing, and what their interest are doing so. In case something happens and someone needs t know where a soldier is accountability comes into play. Army Regulation 600-20 IAW Discipline. Why is discipline so important? Because to be accounted for is a part of disciplinary actions.
Malinowski, Zachary W. "Revenues High On Marijuana." Planning 79.4 (2013): 9-11. Academic Search Complete. Web. The Web.
The environment and sustainability have become increasingly important topics in today’s society, meaning that their consideration is necessary in most ethical debates. The ethical issue regarding sustainability is whether it is ethical to legalize marijuana in order to preserve the environment. The current illegality of marijuana leads to many covert, unregulated grow-operations. Many of these operations are done indoors for secrecy purposes; this has the adverse effect of exhaustion of energy. In 2012 it was estimated that “1% of U.S. electricity consumption [was due] to indoor cannabis grow-ops” ("The Environmental Benefits of a Legal Marijuana Industry"). Also, these indoor grow operations were “associated with producing 15 million metric tons of CO2” pollution (Green). The outdoor operations are not any better as “they destroy the forests” in which they grow through exhaustion in the form of deforestation, as well as degradation in the form of soil erosion (Green). The shift to legal production by distributors results in forcing “producers toward sun growing” and will ultimately result in “a corresponding reduction in electrical use and a significant reduction in carbon dioxide emissions” (Green). Along with remedying the faults of illegal growing, legalization would result in grow-operations of a vastly larger scale, which means that more plant life will be added to the environment. “The nature of the [marijuana] plant enables it to absorb incredible amounts of carbon dioxide from the atmosphere” ("Using Hemp to Halt Climate Change"). In addition, the plant does “not only absorb carbon dioxide, but it puts much of it into the soil,” which “enhances the soil” ("Using Hemp to Halt Climate Change"). However, the one n...
What is IFRS, and what is its significance in the world market? In 2001 the International Accounting Standards Board, or IASB, was created to develop a set of standards by which global financial statuses could be reported. According to financialstabilityboard.org, this set of standards, known as the International Financial Reporting Standards, or IFRS, falls under the jurisdiction of the IFRS Foundation, which is a non-profit, private and independently run entity that exists for the public interest, is based on four principle objectives. The first is to develop a single set of international financial reporting standards (IFRS). This set would be high in quality, readily understandable, easily enforceable, and acceptable world-wide. The second objective is to encourage the use of this set of standards in the international business world. Thirdly, the ISAB would like to monitor the needs of different sizes and types of businesses in different settings. The fourth objective is to promote the adoption of the IFRS by converging national accounting standards wit...
Differences remain between U.S. GAAP and IFRS when it comes to revenue recognition. U.S. GAAP gives detailed rules covering 200 different pronouncements about how revenue should be recognized while IFRS offers two standards, IAS 18 and IAS 11; these deal with revenue and construction contracts. There is a current proposal for a new revenue recognition standard for both IFRS and U.S. GAAP (Doupnik & Perera, 2014). This standard seeks a main direction and corrects inconstancies between the two different views. This proposal would bring a unity to both entities and more progress toward
In 1937, the federal government outlawed the substance, which pushed the growth and sale underground (Rendon). In 1970, President Nixon declared the substance a Schedule I Substance, which indicates that the substance has “a high potential for abuse” and “no currently accepted medical use” (Controlled Substances Act). The federal government has specified that for marijuana to have an accepted medical use, it must “be subjected to the same rigorous clinical trials and scientific scrutiny that the Food and Drug Administration (FDA) applies to all other new medications” ("Answers to Frequently Asked Questions about Marijuana"). There are numerous stakeholders in an ethical dilemma of this magnitude, which emphasizes the need to identify the most important of all the stakeholders, which can be divided into three groups.... ... middle of paper ...
Being the leader in its industry, the company has capitalized on the large market capital and is opening up to foreign countries where organic food is appreciated.
As NPV and IRR use the output of risk management (Atrill and McLaney, 2012) this is likely to increase the accuracy of these processes. But accurate outputs do not necessarily increase firms and projects performance. The information needs to be analysed by people with the skills to interpret the data: Financial decisions rarely have a yes/no answer, and are often multidimensional. (Atrill and McLaney, 2012) To minimise mistakes, skilled staff are needed.
With this happening, a lot of things are being brought up. One of the main topics that come up is the economic value that this revenue will generate and how it will affect the state. The legalization of marijuana will have a huge impact on the economics of the United States. To the point that I feel that government will assist in the continuation of these companies. If passed by the government, the sale of marijuana could generate millions of dollars in tax revenue.
According to the conceptual framework, the potential users of financial statements are investors, creditors, suppliers, employees, customers, governments and agencies, and the general public (Financial Accounting Standards Board, 2006). The primary users are investors, creditors, and those who advise them. It goes on to define the criteria that make up each potential user, as well as, the limitations of financial reporting. The FASB explicitly states that financial reporting is “but one source of information needed by those who make investment, credit, and similar resource allocation decisions. Users also need to consider pertinent information from other sources, and be aware of the characteristics and limitations of the information in them” (Financial Accounting Standards Board, 2006). With this in mind, it is still particularly difficult to determine whom the financials should be catered towards and what level of prudence is necessary for quality judgment.
Companies typically provide financial information to their investors, along with any additional data that can assist them in making educated decisions regarding their investments. While financial statements are an advantageous tool, they become useless if investors and other external users are unable to rely on the accuracy of the information contained in them. Enron, for example, inflated its profits in an attempt to make investors believe that their investment was profitable, ...
The level of accounting quality in terms of earnings management, timely loss recognition and more value relevance were better in firms that applied IAS. All this being presented in a very relevant manner clearly displaying compositions of the firms selected. Evidence showed that there was less earnings management in firms that applied IAS as the IAS left less room for manipulation to results to present desired financial picture of a firm, earnings were less smoothed and hence there was larger variances in earning reported specially with respect to earnings, cash flows and accruals and hence showing the actual picture to users of financial statements. (Lang, [2003]) Secondly, when evaluating value relevance is was concluded that as inherently high as well, the value for listed and regulated firms the relevance was high before and after adoption, hence no significant change. Lastly, with reference to timely loss recognition, again it was evidenced that all loses were timely reported and not allowed to be carried forwards or left to be recognized on the discretion of the management, as consistency in policies is expected to be applied once IASs are adopted. There were some evidence however, that suggested that in some firms belonging to particular industries, in some countries showed no significant variance in time loss recognition and