Reference no: EM132994045

Problem - Your company uses IFRS as basis for financial reporting. In 2020 the company bought 2000 units of merchandise goods at 35 PLN/unit. The cost of transport of goods to the entity was 8 PLN/unit. At the end of the year the managers value the goods. The goods could be sold on the market at 45 PLN/unit, but the company is obligated to sell a part of them to the client ABC under long-term contract. In such a case the company will receive the amount 43 per unit. If the company is to sell the items on the market, it has to cover some commission of 7 PLN/unit. When selling the items to ABC, the company does not have to cover any costs (commission). The part, which has to be sold to the client (ABC) is 67% of held units (67% of 2000). Calculate at what value the goods should be presented in the balance sheet of the company at the end of the 2020.