Eggcellent, page-104

@Youssef

Work out EBITDA from the P&L, then subtract the A (bird flock amortisation) and add back the actual bird flock addition (which I take to mean real cash expense), so that you get a "real cash" EBITDA (apart from capex expenditure).

Then add back the annual change in provisions, so that you get: EBITDA + dP

Then add the annual increase in working capital (receivables+invetories-payables) to the operating cashflow-before-interest-&-tax, so that you get: OCFBIT+ dWC

You check EBITDA+dP against OCFBIT+dWC for the last few years and you will see how well they match up. Given the magnitude of the "bird flock additions", this must mean (I would think) that this is a real cash expense.

It's too large to be hidden in the "investment cashflows" and it's too large to be hidden in the indirect expenses (in the P&L). For my money, it sits comfortably within COGS and still leaves plenty for chicken feed and what have you (from what this chicken/egg farm ignoramus can tell).

Just because it is itemised separately does not, I don't think, automatically imply that it cannot exist within another element of the P&L. For example, employee cost's are regularly disclosed in the notes, but this does not alter the fact that in the P&L these costs might be spread between COGS and indirect costs.