Regal Global Industries, Inc. is a multinational conglomerate that is both a manufacturer and distributor of various products and services in several industries. Regal provides products and services to both the retail consumer markets, as well as to the business to business sector, under several different brand names through a multitude of subsidiaries. Regal also operates a financial services division to facilitate financing and leasing of some of its commercial equipment products. Regal is headquartered in Los Angeles, CA, and is a publicly traded company, listed on the NYSE. Regal has manufacturing and distribution facilities throughout the US, Asia, and Latin America. Regal sells its various product lines domestically and internationally, in all major industrialized markets.

You are a newly hired Senior Staff Accounting assigned to the international accounting team in the Los Angeles corporate headquarters. You report to Barry Burton, European Segment Accounting Manager, who is a direct report to Steve Fox, Controller for international operations. Steve is a direct report in the Clark Green, corporate chief financial officer.

The European Business Segment is a mirror of the overall corporate footprint and provides products and services in all of Regals lines of business. The European Business Segment maintains accounting records locally following IFRS, as well as the other local accounting requirements. The European Business Segment consolidates into the Corporate Parent, which is a US corporation, following US GAAP.

Q: On your first day, you have a meeting with your new boss Barry Burton. After completing your new employee orientation and helping you get settled into your workstation, Steve, gives you your first assignment. Steve has asked you to compute the valuation of the inventory of Weyland Corporation, a Regal subsidiary, at December 31, 2017, under IAS 2 using the lower of cost and Net realizable value principle. Weyland is a retailer of fine British furniture and has five major product lines: sofas, dining tables, beds, closets, and lounge chairs. At December 31, 2017, quantity on hand, cost per unit, and net realizable value per unit of the product lines are as follows:

Product line Quantity on hand Cost per unit ($) NRV per unit ($)

Sofas 100 1,000 1,020

Dining tables 200 500 450

Beds 300 1,500 1,600

Closets 400 750 770

Lounge Chairs 500 250 200