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If the accounting regime that governs Canada’s burgeoning marijuana industry seems a little hazy to you, you’re not alone: Some publicly-traded cannabis companies aren’t entirely sure what to make of it either.

Under International Financial Reporting Standards (IFRS), marijuana producers must use an accounting practice unique to the agricultural sector that pre-books income for crops as they grow.

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The “biological asset” rule credits the value of product that is growing at fair value minus selling costs and reports that figure on the income statement.

The changes in fair value are not counted as revenue, but as a reduction in the cost of sales, which as a result boosts the bottom line.

That means a company can report net income in a quarter in which they grew or harvested marijuana, but had no sales to speak of.

“If you polled the LPs almost every single one would say they prefer not to do it,” says Maruf Raza, national director of public companies at accounting firm MNP, who gave a presentation on how to navigate the complex agricultural accounting standards to some 30 licensed producers last month.