Net Realizable Value - NRV

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DEFINITION of 'Net Realizable Value - NRV'

The value of an asset that can be realized by a company or entity upon the sale of the asset, less a reasonable prediction of the costs associated with either the eventual sale or the disposal of the asset in question.

INVESTOPEDIA EXPLAINS 'Net Realizable Value - NRV'

Net realizable value 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.

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