Net Realizable Value (NRV) of Inventory 101

Net Realizable Value (NRV) of Inventory is measured as the estimated selling price less estimated costs of completion and selling. NRV = (1) - (2) - (3). Where, (1) = Estimated Selling Price, (2) = Estimated Cost of Completion, (3) = Estimated Cost of Selling or Disposal.

#Financial Accounting #Finance #Financial Statement Analysis #Earnings #Profit #GAAP #Generally Accepted Accounting Principles

#Net Realizable Value (NRV)