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).
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.