PEILCC Annual Report 2025

PRINCE EDWARD ISLAND LIQUOR CONTROL COMMISSION Notes to Financial Statements Year Ended March 31, 2025

4. SIGNIFICANT ACCOUNTING POLICIES (continued) Future changes in significant accounting policies

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 Commission in preparing these financial statements. These changes are not expected to have a material impact on the Commission'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.

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5. ACCOUNTS RECEIVABLE

2025

2024

$ 1,294,223

Trade accounts receivable

$ 1,371,547

348,458 1,642,681

Prince Edward Island Cannabis Management Corporation

308,176

1,679,723 (65,742)

(65,742)

Allowance for doubtful accounts

$ 1,576,939 $ 1,613,981 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 $65,742 (2024 - $65,742) 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.

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PEILCC 2024-2025 Annual Report