net realizable value

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Net Realizable Value

The net asset value of an asset or investment if it were sold, less the estimated cost of the sale and the amount the seller would have to spend to bring the asset or investment to a state where it can be sold. The NRV is used in GAAP accounting rules to ensure that the value of an asset or investment is not overstated.

net realizable value

the amount for which a FIXED ASSET or CURRENT ASSET can be sold, less any selling expenses involved. Net realizable value of an asset may be below its Net Book Value in which case the ACCOUNTING PRINCIPLE of prudence would suggest that the value of the asset in the company's LEDGER accounts should be adjusted downward to avoid overstating asset values in the BALANCE SHEET.
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The preferred valuation basis for assets should be net realizable value because such values are readily observable in the market and understandable to users, avoid arbitrary cost allocations, are easily comparable and help with performance assessments.
These decreases were offset by (i) the net increase in value of real estate assets under development of $1,353,297 which results primarily from changes in the net realizable value estimates including the shortening of the discount period due to the passage of time and sales of condominium units and homes and (ii) operating income of $830,848 which primarily represents interest income earned from cash and cash equivalents.
Under the liquidation basis of accounting, assets are stated at their estimated net realizable value and liabilities are stated at their estimated settlement amounts, which estimates will be periodically reviewed and adjusted as appropriate.
The valuations presented in the accompanying Condensed Statement of Net Assets in Liquidation represent estimates, based on present facts and circumstances, of the net realizable values of assets and the costs associated with carrying out the plan of liquidation and dissolution.
Amortizing the amounts reported as assets over the estimated benefit period based on the proportion of current-period revenue from the advertising to probable remaining future revenue, subject to a net realizable value test.
During 1993 the Company recorded write-downs of approximately $8,300,000 to adjust certain assets related to the November 1992 acquisition of CGTI to their net realizable value.
6 million for the write downs of fixed assets to net realizable values and $0.
Loans transferred to OREO were written down against the loan loss reserve by $755,000, reflecting what the Bank believes to be current net realizable values.
Wood, president and chief executive officer, said the special charge relating to CDS covers reserves against future expenses and reduces program assets to estimated net realizable values.
With the continued economic uncertainty of the commuter aircraft industry, the partnership reduced the carrying value of these commuter aircraft to their current estimated net realizable values.