The liability of a borrower of gold in the business of mining and selling gold should be valued at the borrower's year-end and any gain or loss indicated by such valuation the debt is reflected in the borrower's income for that year.
Any gain or loss realized by a mining company from the borrowing of gold (due to changes in the quantum of its liability) will not constitute income or loss from the production of metal and thus will not enter in the computation of resource profits.
