Net Realizable Value - NRV

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.

Notes:

Net realizable value is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods.

See also: Book Value, Generally Accepted Accounting Pinciples - GAAP, Intrinsic Value, Net Asset Value - NAV, Replacement Cost, Stated Value