Accounting for Cannabis: Biological Assets Accounting Renders Cannabis Producers Revenue Before Being Sold

Investors will have to brush up on accounting standards to fully understand how these companies truly operate.  And also to be prepared for when the negative surprises and writedowns happen.

"“Is cannabis ultimately agriculture? Or is it industrial, biotech, or CPG (consumer packaged goods)?,” Rosen said. “There are all sorts of elements in the cannabis ecosystem”"

https://ca.finance.yahoo.com/news/pot-companies-reporting-profit-unsold-bud-totally-legal-130506269.html Cannabis companies are free to book profit on pot that isn’t finished growing and hasn’t been sold. It’s all above board thanks to an accounting rule traditionally applied to assets like live hogs and grapes still on the vine.