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.
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.
This contrasted in 1997 with a downward revaluation of real estate in Switzerland to reflect net realizable values.
5 million for asset revaluation losses on the Wentworth project and the company's Rancho San Pasqual (formerly Eagle Crest) golf course to reflect estimated net realizable values.