PEILCC 2023 Annual Report

PRINCE EDWARD ISLAND LIQUOR CONTROL COMMISSION Notes to Financial Statements Year Ended March 31, 2023

5. ACCOUNTS RECEIVABLE

2023

2022

$ 1,300,630

Trade accounts receivable

$ 1,185,725

243,255 1,543,885

Prince Edward Island Cannabis Management Corporation

305,595

1,491,320 (64,681)

(64,681)

Allowance for doubtful accounts

$ 1,479,204 $ 1,426,639 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 Commission's trade and other receivables have been reviewed for indications of impairment. It is management's assessment that an allowance of $64,681 (2022 - $64,681) is required to fairly state the value of accounts receivable. The receivables from the Prince Edward Island Cannabis Management Corporation consist primarily of accruals to account for the shared use of resources of the Commission and is based on a best estimate of the cost of those resources used.

6. INVENTORY

2023

2022

$ 6,278,803 3,684,797

Warehouses

$ 5,321,961 3,769,061

Stores In-transit

349,057

119,131

$ 10,312,657 $ 9,210,153 Inventories recognized in the statement of financial position consist of liquor products held for sale. In 2023, a total of $56,682,256 (2022 - $51,655,081) of inventories was included in the statement of profit or loss as cost of sales. In-transit inventory consists of beverage alcohol that has been customs cleared at the dock in Halifax as part of a consolidated load destined for three liquor boards in the Maritimes. The Commission owns the inventory in this case after it has been cleared at the point of entry into Canada. There were no write-downs of inventories. No reversals of previous write-downs were recognized as a reduction of expense in 2023 or 2022. None of the inventories are pledged as security for liabilities.

7. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

2023

2022

$ 6,014,971

Accounts payable and accrued liabilities

$ 5,232,995

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PEILCC 2022-2023 Annual Report