Q1 Financial Report - 2011

Ag Growth International Inc.
NOTES TO UNAUDITED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
[in thousands of Canadian dollars, except where otherwise noted and per share data]
March 31, 2011
Foreign currency translation
Each entity in Ag Growth determines its own functional currency and items included in the
financial statements of each entity are measured using that functional currency.
Transactions in foreign currencies are initially recorded by Ag Growth entities at their respective
functional currency rates prevailing at the date of the transaction.
Monetary items are translated at the functional currency spot rate as of the reporting date.
Exchange differences from monetary items are recognized in profit or loss. Non-monetary items
that are not carried at fair value are translated using the exchange rates as at the dates of the initial
transaction. Non-monetary items measured at fair value in a foreign currency are translated using
the exchange rates at the date when the fair value is determined.
The assets and liabilities of foreign operations are translated into Canadian dollars at the rate of
exchange prevailing at the reporting date and their statements of income are translated at the
monthly rates of exchange. The exchange differences arising on the translation are recognized in
other comprehensive income. On disposal of a foreign operation, the component of other
comprehensive income relating to that particular foreign operation is recognized in the statement
of income.
Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to
the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and
liabilities of the foreign operation and translated at the rate of exchange prevailing at the reporting
date.
Property, plant and equipment
Property, plant and equipment is stated at cost, net of any accumulated depreciation and any
impairment losses determined. Cost includes the purchase price, any costs directly attributable to
bringing the asset to the location and condition necessary and, where relevant, the present value of
all dismantling and removal costs. Where major components of property, plant and equipment
have different useful lives, the components are recognized and depreciated separately. Ag Growth
recognizes in the carrying amount of an item of property, plant and equipment the cost of
replacing part of such an item when the cost is incurred and if it is probable that the future
economic benefits embodied with the item can be reliably measured. All other repair and
maintenance costs are recognized in the statement of income as an expense when incurred.
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