Definitions for "Net Realisable Value"
Net realisable value is used to calculate the value of assets (usually stocks/inventory) when cost can not be used. Net realisable value is most often used when it is less than the cost of the asset in question. Then, in ...... more on: Net realisable value
The amount for which an asset could be disposed, less any direct selling costs (SSAP 9).
relevant to Stock and Work In Progress valuations. If the realisable value is less than cost this value is used. Uncommon because damaged stock may be discounted, but seldom to less than cost.