In May of the current year, Petrex Corporation, a Canadian refining company listed on the Toronto Stock Exchange, signed a contract to purchase a large volume of crude oil from a supplier. Petrex's business was to refine the crude oil into various petroleum products and sell the products to its customers; this particular purchase represented about 1/3 of the year's production. The non-cancellable purchase contract, on the day it was signed, specified a purchase price of $8,500,000 for the total volume of crude oil. On December 31. Petrex's fiscal year end, the market value of crude oil had fallen dramatically, and the market value of the contracted oil was now $6,800,000.

Explain what disclosures Petrex is required to make at year-end.

Answer rating: 100% (QA)

In the above case the Peterex Corporation has suffe... View the full answer