Net Realizable Value Calculator

Calculate the net realizable value of assets considering completion costs, disposal expenses, and market conditions. Essential for accurate financial reporting!

📊 Asset Valuation • 💰 Cost Analysis • 📈 Market Timing • 🔍 Impairment Testing

Asset Valuation Parameters

Asset Type:

Gross Asset Value ($):

Book or estimated value

Estimated Selling Price ($):

Expected market price

Completion Costs ($):

Disposal Costs ($):

Asset Condition

Physical Condition (%):

Damaged 80% Excellent

Market Demand (%):

Low 100% High

Market Timing:

Liquidation Timeframe:

Additional Costs

Storage/Holding ($):

Marketing/Advertising ($):

Legal/Professional ($):

Transportation ($):

Quick Scenarios:

Value Waterfall

Recovery Rate

0% 25% 50% 75% 100%

Good Recovery

Asset Condition Assessment

Excellent

Good

Fair

Poor

NRV Formula:

Asset Details:

Type: Inventory • Condition: Good • Market: Normal • Timing: Standard

Value Decay Timeline

Fresh

Aging

Stale

Obsolete

Net Realizable Value Results

Net Realizable Value ($)

Total Costs ($)

Recovery Rate (%)

Impairment Loss ($)

Cost Breakdown

Scenario Analysis

"Net realizable value ensures assets are not overstated in financial statements."

- Accounting Standards

Risk Assessment

Market Timing Risk

Condition Risk

Cost Escalation Risk

Liquidity Risk

Net Realizable Value Guide

What is Net Realizable Value?

Net Realizable Value (NRV) is the estimated selling price of an asset in the ordinary course of business, less the estimated costs of completion and disposal. It's a key concept in asset valuation and impairment testing.

NRV = Estimated\ Selling\ Price - Completion\ Costs - Disposal\ Costs

Key Applications

Inventory Valuation: Lower of cost or NRV principle
Receivables: Allowance for doubtful accounts
Asset Impairment: Testing for impairment losses
Business Combinations: Fair value measurements

Cost Components

Completion Costs: Additional costs to make the asset saleable
Disposal Costs: Selling expenses, commissions, legal fees
Storage Costs: Holding costs until sale
Marketing Costs: Advertising and promotion expenses

Accounting Standards

IAS 2 - Inventories (Lower of cost or NRV)
IAS 36 - Impairment of Assets
IFRS 9 - Financial Instruments (Expected credit losses)
US GAAP ASC 330 - Inventory
Regular assessment required for material assets