net realizable value

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Related to Realizable Value: Present value, 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.
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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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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The recoverable amount of business assets in Mobara Plant is calculated by the net realizable value, and the net realizable value is evaluated by the appraisals by third parties.
Management believes Adjusted Gross Margin provides useful information to investors because it eliminates the gross impact of volatile commodity prices and adjusts for certain non-cash items and timing differences created by our inventory financing agreements and lower of cost or net realizable value adjustments to demonstrate the earnings potential of the business before other fixed and variable costs, which are reported separately in Operating expense (excluding depreciation) and Depreciation, depletion, and amortization.
* The realizable value or the settlement of a liability is an undiscounted value in cash or cash equivalents expected to be paid to pay off debts, according to the normal course of business;
OREO carrying amounts reflect management's estimate of the realizable value of these properties incorporating current appraised values, local real estate market conditions and related costs.
Bank fur Arbeit und Wirtschaft und Osterreichische Postsparkasse Aktiengesellschaft for consideration equal to the net realizable value of the bank at the time of closing, which the company expects will be approximately EUR86 million.
The asset value V([alpha],[alpha]) is not equal to the net realizable or intrinsic value from the program of harvesting at the current instant and also harvesting at the current age in future, (10) which is R([alpha]) + L([alpha]), nor to the value of harvesting at the current instant and harvesting at [alpha] in future rotations, which is R([alpha]) + L([alpha]): rather, it relates to the present value of optimized decisions, not to the net realizable value. At age [alpha], the premium from the option to harvest at [alpha] instead of at [alpha] is V([alpha],[alpha])- [R([alpha]) + L([alpha])], the present value of the forest at the current date less the net realizable value.
During the third quarter, the company reclassified these aircraft and a Fokker 50 aircraft to held for sale on the company's balance sheet and recorded impairment charges of USD8.5 million for the Fokker 100 aircraft and USD0.3 million for the Fokker 50 aircraft, based on the company's estimated realizable value net of disposal costs.
A new study conducted by e-commerce site OLX and research firm IMRB International says total estimated realizable value of stocked goods in urban in India is whopping Rs.
According to IAS 2 "Inventories", the valuation of stocks at balance is realized at the lower value between the cost and the net realizable value, representing the estimated selling price that could be obtained in the ordinary course of business, less the estimated costs of completion and necessary costs of sale.
Inventories are to be reflected at the lower of cost versus net realizable value, which is the IFRS method, ignoring the GAAP approach of selecting the market as the in-between figure for current replacement cost, net realizable value and net realizable value less a normal profit margin.
These are not assets in the sense of assets of realizable value since they are in day to day use."
One, FDIC-related earnings, which represent the difference between BankUnited's fair value of the assets it acquired in the 2009 transaction and their ultimate realizable value, remains substantial.