Recently, when excavating one site, Northstar Resources came across a significant amount of gold. Northstar Resources is now mining and selling the gold. Currently, it is trying to decide how to account for the gold inventory and is considering valuing the gold at market price once it has been refined, even though it is not yet sold.

Discuss the financial reporting issues (recognize or do not recognize) and provide recommendation(s) on how to handle each situation. As you write, keep your audience in mind.