net realizable value
The amount you would likely receive if an item is sold in a typical transaction minus any cost incurred in order to get the item sold.
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net realizable value
expected selling price of an inventory item less expected costs to complete and dispose. This is the ceiling amount in applying the lower of cost or market rule to inventory valuation.
net realizable value approach
a method of accounting for by-products or scrap that requires that the net realizable value of these products be treated as a reduction in the cost of the primary products; ...
Realizable value
The realizable value is the expected proceeds from converting assets into cash.
Realization ...
Net Realizable Value - NRV
The value of an asset that can be realized by a company or entity upon the sale of the asset, less a reasonable prediction of the costs associated with either the eventual sale or the disposal of the asset in question.
Net realizable value: the actual or estimated selling price of an asset less all further costs to completion (e.g. Cost of a repair if it needs to be repaired before sale) and all costs to be incurred before and on sale (e.g. commission).
However, the lower-of-cost-or-market rule can become complex because accounting rules specify that market not exceed a ceiling amount known as "net realizable value" (NRV = selling price minus completion and disposal costs).
The taxpayer, who used the "lower of cost or market" method of valuing inventories, wrote down what it regarded as "excess" inventory to its net realizable value, which in most cases was determined to be scrap value.
auditors, and the predecessor auditor needed to conduct the audit: Some specialists needed on an audit may include engineers to verify the stage of completion of electronic components, real estate appraisers to appraise realizable value of real ...
Because there is an inherent risk that clients might default on payment, accounts receivable have to be recorded at net realizable value.
Term used when discussing INVENTORIES. Inventory cannot be valued lower than the "floor" which is the net realizable value of the inventory less an allowance for a normal profit margin.
allowance for doubtful accounts A contra asset account with a credit balance used to reduce the carrying amount of accounts receivable to net realizable value.
original cost of asset minus depreciation the historical cost of an asset less any accumulated depreciation or other provision for diminution in value, for example, reduction to net realizable value, ...
Revaluation helps to establish realistic values of assets in place of historical costs since market prices and realizable values are taken into consideration by the valuer. (See also REAL EFFECTIVE EXCHANGE RATE).
 See also: Expense, Banks, Cost of goods, Cost of goods sold, Values
  
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