Findit Gold Inc. (FGI) was created in 2005 and is 25% owned by Findit Mining Corporation (FMC). FGI's shares trade on the local exchange and its objective is to become a substantial low-cost mineral producer in developing countries. FMC has provided substantial financial support to FGI when FGI was in the exploration stage.
Over the most-recent five-year period, FGI carried its gold bullion inventory at net realizable value and recognized revenues on the gold produced (net of refining and selling costs) at net realizable value, when the minerals were produced.
Gold is a commodity that trades actively and whose price fluctuates according to supply and demand.
Assume the role of the controller of FMC and assess the financial reporting policies relating to inventory valuation and revenue recognition.