Net Realizable Value (NRV) | Example | How to Calculate NRV?
34.7 هزار بار بازدید -
5 سال پیش
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In this video on Net
In this video on Net Realizable Value, we are going to study definition, example and how to calculate Net Realizable Value (NRV).
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐍𝐞𝐭 𝐑𝐞𝐚𝐥𝐢𝐳𝐚𝐛𝐥𝐞 𝐕𝐚𝐥𝐮𝐞?
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Net Realizable Value is the value of asset that excludes a reasonable estimate of the costs involved with the disposal of the asset or the eventual sale that is made or obtained from the sale of the asset is the net realizable value.
𝐒𝐭𝐞𝐩𝐬 𝐭𝐨 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐞 𝐍𝐞𝐭 𝐑𝐞𝐚𝐥𝐢𝐳𝐚𝐛𝐥𝐞 𝐕𝐚𝐥𝐮𝐞
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Step #1 - Determine the asset's market value.
Step #2 - List all costs involved with the asset sales process (including transport, insurance, production, testing, tax, etc.)
Step #3 - Calculate Net Realizable Value = Market Value of Asset – Selling Cost of the Asset.
𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐍𝐞𝐭 𝐑𝐞𝐚𝐥𝐢𝐳𝐚𝐛𝐥𝐞 𝐕𝐚𝐥𝐮𝐞
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Let's understand it with help of example.
A company ABC Inc. is trying to get rid of some of its outdated phones and wants to sell them to a local buyer for $ 6,000, but it needs to pay $ 260 to get them delivered and insured and another $50 to get the paperwork completed.
By using above formula we get,
So the telephones’ NRV can be calculated as,
= $6,000 – $260 - $50 = $5,690.
To know more about 𝐍𝐞𝐭 𝐑𝐞𝐚𝐥𝐢𝐳𝐚𝐛𝐥𝐞 𝐕𝐚𝐥𝐮𝐞, you can go to 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:- https://www.wallstreetmojo.com/net-re...
Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - @wallstreetmojo
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐍𝐞𝐭 𝐑𝐞𝐚𝐥𝐢𝐳𝐚𝐛𝐥𝐞 𝐕𝐚𝐥𝐮𝐞?
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Net Realizable Value is the value of asset that excludes a reasonable estimate of the costs involved with the disposal of the asset or the eventual sale that is made or obtained from the sale of the asset is the net realizable value.
𝐒𝐭𝐞𝐩𝐬 𝐭𝐨 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐞 𝐍𝐞𝐭 𝐑𝐞𝐚𝐥𝐢𝐳𝐚𝐛𝐥𝐞 𝐕𝐚𝐥𝐮𝐞
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Step #1 - Determine the asset's market value.
Step #2 - List all costs involved with the asset sales process (including transport, insurance, production, testing, tax, etc.)
Step #3 - Calculate Net Realizable Value = Market Value of Asset – Selling Cost of the Asset.
𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐍𝐞𝐭 𝐑𝐞𝐚𝐥𝐢𝐳𝐚𝐛𝐥𝐞 𝐕𝐚𝐥𝐮𝐞
----------------------------------------------------------
Let's understand it with help of example.
A company ABC Inc. is trying to get rid of some of its outdated phones and wants to sell them to a local buyer for $ 6,000, but it needs to pay $ 260 to get them delivered and insured and another $50 to get the paperwork completed.
By using above formula we get,
So the telephones’ NRV can be calculated as,
= $6,000 – $260 - $50 = $5,690.
To know more about 𝐍𝐞𝐭 𝐑𝐞𝐚𝐥𝐢𝐳𝐚𝐛𝐥𝐞 𝐕𝐚𝐥𝐮𝐞, you can go to 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:- https://www.wallstreetmojo.com/net-re...
Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - @wallstreetmojo
5 سال پیش
در تاریخ 1398/01/30 منتشر شده
است.
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