net realizable value

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Related to Realizable Values: Net Realizable Value

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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Further, a number of actual or probable events, which were not known or anticipated at the time of the Proxy estimates or the company's shareholder meeting on September 21, 1999, resulted in an additional reduction in the potential realizable value to $63.
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.
7 million, ii) a decrease in the estimated net realizable value of the Partnership's mortgage servicing rights of approximately $3.
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.
During 1993, the company and its subsidiary bank systematically wrote real estate assets down to estimated realizable values, shrank the asset size of the bank and reduced salary costs and other operating expenses.
will still have a diverse portfolio of independent businesses with good market positions and high realizable values.
The transaction will be treated as a purchase for accounting purposes, which will permit NationsBank to bring MNC assets onto its books at realizable values.
Following the sale of the Stratacom shares and the repayment of indebtedness, Prospect estimates that the net ultimate realizable values of Wood River's other investments will exceed the $1.
The non-cash charge reflects certain estimates by the Company as to realizable values of assets and costs resulting from the incident net of insurance proceeds.