How does the accoun�ng for biological assets differ from the accoun�ng for other inventory items? 2) How does Aurora Cannabis determine the stage of comple�on for cannabis plants? Does any part of this calcula�on involve es�ma�on? 3) What inputs and assump�ons are used to determine the fair value of cannabis plants? 4) On which level of the fair value hierarchy are the inputs and assump�ons categorized? What does this indicate about the reliability of the informa�on? 5) Why does the company provide a sensi�vity analysis of the significant inputs/assump�ons? 6) What is the difference between propaga�on plants and cannabis plants? 7) What percentage of the total value of assets available for transfer to inventory results from biological transforma�on? (You may find it useful to present a chart similar to the one we used in class on 15 February to analyze the HEXO example. Make sure your chart includes both years' data.) What is the cause of this change in value due to biological transforma�on? 8) Provide a general conclusion to your friend about the role of measurement uncertainty in the valua�on of biological assets and the impact on risk from the perspec�ve of an investor.

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1 Accounting for Biological Assets vs Other Inventory Items The accounting for biological assets differs from other inventory items due to their nature as living organisms that undergo biological tran... View the full answer