NRV
Business & Finance abbreviation · Accounting
| Stands for | Net realizable value |
|---|---|
| Categories | Business & Finance |
NRV stands for Net realizable value, an accounting abbreviation.
Estimated selling price of inventory or receivables in the ordinary course of business, minus the costs to complete and sell them. Inventory must be written down when its NRV falls below cost.
Example: The fashion retailer wrote down last season's stock to NRV after markdowns of 60 percent.
Usage notes
IFRS (IAS 2) requires inventory to be measured at the lower of cost and NRV. US GAAP adopted the same test for most inventory through ASU 2015-11, but LIFO and retail-method inventory still use the older lower of cost or market rule. For receivables, NRV is the amount expected to be collected.
Related abbreviations
More accounting abbreviations
- MoM – Month over month
- MTD – Month to date
- MTM – Mark-to-market
- NBV – Net book value
- NCI – Non-controlling interest
- NI – Net income
- OCI – Other comprehensive income
- P&L – Profit and loss statement
- PAT – Profit after tax
- PBT – Profit before tax
- PCAOB – Public Company Accounting Oversight Board
- PO – Purchase order