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.

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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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.
In addition, if the employer's basis is fixed at the property's estimated net realizable value, a subsequent sale at a lesser amount will reflect a loss attributable to a decline in the value of the asset while holding it, rather than reflecting a cost of moving the employee.
5 million pre-tax, is expected to be recognized to reflect anticipated net realizable value.
The minimum offer is generally equal to the realizable value of assets plus future income.
However, current market value and net realizable value are sometimes difficult to obtain and may be inappropriate benchmarks for some company-specific assets.
The property will be written down to an estimated net realizable value of $4.
0 billion in discontinued operations, primarily to write down assets associated with the EfW business to their realizable value.
The sale of a client's house could require closing and brokerage costs, again reducing the net realizable value.
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.
This increase is attributable to (i) operating income of approximately $441,917 which primarily represents interest income earned from cash and cash equivalents and (ii) the increase in real estate assets under development of $393,765, which results primarily from changes in the net realizable value estimates of certain development projects due to the shortening of the discount period as a result of the passage of time, offset by (iii) the recording of a $469,154 increase to the reserve for option cancellations to reflect the increase in the market price of WRP's common stock between June 30, 2006 and September 30, 2006.
Tenders are invited for Inventory valuation as per as-2 & aas-28 for the year 2014-15 on weighed average basis as well as working out of realizable value as on 31.