PEI Cannabis Annual Report 2025

PRINCE EDWARD ISLAND CANNABIS MANAGEMENT CORPORATION Notes to Financial Statements Year Ended March 31, 2025

4. SIGNIFICANT ACCOUNTING POLICIES (continued) Future accounting developments

A number of new standards and amendments to standards and interpretations are not yet effective for the year ended March 31, 2025 and have not been adopted by the Corporation in preparing these financial statements. These changes are not expected to have a material impact on the Corporation's financial statements. IFRS 18 - Presentation and Disclosure in Financial Statements IFRS 18 will replace IAS 1 Presentation of Financial Statements and applies for annual reporting periods beginning on or after January 1, 2027. The new standard introduces the following key new requirements:  Present specified categories and defined subtotals in the statement of profit or loss  Provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements  Improve aggregation and disaggregation The company is still in the process of assessing the impact of the new standard on its financial statements.

5. ACCOUNTS RECEIVABLE

2025

2024

$ 202,093

Trade accounts receivable

$ 198,551

101,809 303,902 (38,204)

Other receivables

105,063 303,614 (34,173)

Allowance for doubtful accounts

$ 265,698 $ 269,441 All amounts in the accounts receivable balance are short term. The net carrying value of accounts receivable is considered a reasonable approximation of fair value. All of the Corporation's trade and other receivables have been reviewed for indications of impairment. It is management's assessment that an allowance of $38,204 (2024 - $34,173) is required to fairly state the value of accounts receivable.

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PEICMC 2024-2025 Annual Report

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