Canadian agricultural companies are able to value biological assets according to IAS 41. This has been been a positive shift in financial reporting, however if you handle the books for any cannabis companies or advise investors who’re thinking about putting money in cannabis stocks be aware as IFRS has the potential to inflate profits:
IAS 41 Agriculture sets out the accounting for agricultural activity as follows: the transformation of biological assets (living plants and animals) into agricultural produce (harvested product of the entity's biological assets). The standard generally requires biological assets to be measured at