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
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.