EBITDA spreadsheet error increases cannabis company loss by almost US$50 million

Recent spreadsheet error showing how a spreadsheet error can change the information reported and relied on with investments. In this case a big player in the Canadian cannabis industry found a formula error which altered the reported adjusted EBITDA loss calculation.

The explanation behind the error is not disclosed, but it is a reminder that you need to be careful with spreadsheets, especially when relying on human intervention for the calculation. Unfortunately due to IFRS and other accounting standards it is difficult to take information straight off accounting systems and spreadsheets inevitably need to be used.

The only way to address human error ( 99.9% of spreadsheet errors are human errors) is by improved training and sticking to the normal best practices of checks and balances in any spreadsheet.

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See Yahoo FinanceĀ ReportĀ on the issue