The concept of "net realizable value" crops up in two major categories of business bookkeeping: inventories and accounts receivable. Both are classified as current assets, meaning they are assets that ...

In accounting, NRV is an acronym that stands for "net realizable value." An asset's net realizable value is the amount of money a business expects to receive when it sells or collects on the asset.

The FASB issued ASU 2015-11¹ on July 22, 2015, which requires entities to measure most inventory “at the lower of cost and net realizable value,” thereby simplifying the current guidance under which ...