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With regards to inventory, net realizable value (NRV) is the estimated selling price in the ordinary course of business minus any cost to complete and to sell the goods. NRV is one of the amounts considered when determining the lower of cost or market for items in inventory.
Yes, there is a relation between Market Value and NVR.
Subtract the costs required to prepare the item for sale from the expected selling price. The result is the net realizable value of the item in inventory. Add up the NRVfor all items, and the result is the total net realizable value for the company's inventory.
Market value is the value of goods or services or securities identified by the sellers and buyers in an open market.
Net Realizable Value= is associated with receivables and with inventory.
Net Realizable value is the amount that is expected to be collected in the future.
NRV = Accounts Receivables - Allowance for doubtful debt
for inventory, NRV= estimated selling price - cost to complete & to sell the goods
YES - there's a relation between them; under Lower of cost or market method the replacement cost of an inventory would be used as the designated market value when it's below NRV and when it's above the NRV less normal profit margin.
