Net Realizable Value
From Wikipedia, the free encyclopedia
Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods.
Inventory can be valued at either its historical cost or its market value. Because the market value of an inventory is not always available, NRV is sometimes used as a substitute for this value.
