"Revaluation adjustments taken directly to equity"

[goponcho]

Hi,

Reading through capilano annual report CZZ.
In the notes under Tax liabilities is this line: (pp 50)
"Revaluation adjustments taken directly to equity"
Its quite a big amount ~20% of net income

What does this mean?
Not much joy googling it

 

[Value Collector]

Hi,

Reading through capilano annual report CZZ.
In the notes under Tax liabilities is this line: (pp 50)
"Revaluation adjustments taken directly to equity"
Its quite a big amount ~20% of net income

What does this mean?
Not much joy googling it

Capilano are sitting on about $38 Million of honey (roughly 3 months supply)

Most of this honey is bulk honey sitting in barrels waiting to be packed, that they paid a bit over $6/kg for, the price that bulk honey is trading for in the market at the moment has dropped below $6, So capilano has revalued this on its books creating a loss and reducing the equity on the books.

its not really a big deal.

 

[goponcho]

Thanks for the reply - that makes sense.
How did you research that info? Couldn't see any other mention of it in the annual report.

 

[Value Collector]

Thanks for the reply - that makes sense.
How did you research that info? Couldn't see any other mention of it in the annual report.

Which annual report are you reading?

 

[goponcho]

I was looking at the the 2016 AR when i had a look at it last week.... is it actually in there and i missed it? Will have another look tomorrow.

 

[goponcho]

Ok i see that the raw material incr from 15m to 30m but couldnt see any particular mention regarding the price of honey. Did you figure this out from info outside of the report?
Or do revaluation adjustments often relate to inventory?