Ann: Half Yearly Report and Accounts, page-23

Hey LT_Investor, @LT_Investor

It’s a good question.

The accounting standards typically require farms to recognise the value of their production assets.

e.g. cattle or crops as they grow to market maturity.

This smooths out revenue and IMO more importantly aligns revenue to the COGS.

i.e.cost of goods sold and resulting asset revenue are recorded in the same period.

At least that is how I understand it. Any accountants in the room?

What is encouraging to see is that the biological asset figure is on a growth trend.

What can we learn from this?

There are more plants in the ground with maturing flowers maybe...

(It won't grow in a straight line owing to cropping and harvesting schedules)

I do expect to see this figure grow overtime as more PCEs come online.

Cheers