net realizable value


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Related to net realizable value: replacement cost, Fair 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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The provisions for valuation and presentation are not applicable in the following cases: payment transactions based on shares (IFRS 2 Share-based Payment shares) lease transactions (IAS 17 Leases), assessment of stocks to net realizable value (IAS 2 Inventories) valuation s on the usefulness of impairment of assets (IAS 36 impairment of assets).
The expected rate of growth of net realizable value is initially b + g(0) + [[1]/[2] [[sigma].sup.2]]>r.
market is replacement cost not exceeding net realizable value and not less than net realizable value minus normal profit.
Conventional accounting practice is to neglect discounting when estimating the net realizable value of current assets.
Example 3: The net realizable value (NRV) method.--As seen from Table 4, center boards' gross margin is further reduced, but the gross margin of side boards has increased when using the NRV method.
However, GAAP and the FFSC Guidelines also state that raised crops and market livestock could be valued at net realizable value (NRV) when certain conditions exist.
If it becomes probable that the asset will not be acquired or constructed, capitalized costs in excess of the net realizable value of the entity's interest in the asset are charged to expense.
The DIV is also sometimes referred to as net realizable value or NRV.
On the balance sheet, as guided by APB-30, the resulting value of the formerly impaired asset would be stated at the lower of carrying amount or net realizable value in the case of liquidation or abandonment.
Other alternatives include measuring the recoverable amount of the asset by using the net realizable value method or expected net future cashflows.
The residence could be assigned a cost equal to estimated net realizable value, i.e., the amount paid (fair market value) less expected selling expenses.
Adjusted Gross Margin is defined as (i) operating income (loss) plus operating expense (excluding depreciation), impairment expense, inventory valuation adjustments (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase obligations, and purchase price allocation adjustments), depreciation, depletion, and amortization ('DD&A'), RINs loss (gain) in excess of net obligation, and unrealized losses (gains) on derivatives or (ii) revenues less cost of revenues (excluding depreciation) plus inventory valuation adjustments and unrealized losses (gains) on derivatives.