net realizable value

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net realizable value

n
(Accounting & Book-keeping) the net value of an asset if it were to be sold, taking into account the cost of making the sale and of bringing the asset into a saleable state. Abbreviation: NRV
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014
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The amounts reported as assets should be amortized over the estimated benefit period based on the proportion of current-period revenue from the advertising to probable remaining future revenue, subject to a test of net realizable values.
* Amortizing the amounts reported as assets over the estimated benefit period based on the proportion of current-period revenue from the advertising to probable remaining future revenue, subject to a net realizable value test.
The preferred valuation basis for assets should be net realizable value because such values are readily observable in the market and understandable to users, avoid arbitrary cost allocations, are easily comparable and help with performance assessments.