Lower of Cost and Net Realisable Rule Calculation
ContentNRV and Lower Cost or Market MethodAccountingToolsExample of Calculating NRVWhat Is NRV in Accounting?Lower Of Cost Or Net Realizable ValueIFRS and US GAAPWhy do companies use net realizable value? Thus, the amount of cash that is estimated to be received is the reported $4.731 billion balance ($4.843 billion total less $112 million expected to be uncollectible). Just determining whether the…