[Anonymous]

Aren’t those all the same thing? Net realizable value, fair value, market value, current replacement cost.

[M.O.D.]

NRV = FV – costs to sell

These apply to inventory terms, so there is often a difference between cost and market value, ie wholesale price and list price.

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[h0wdyus]

Replacement cost is cost to BUY. NRV is to sell after you started using the asset.. They are never the same.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[thechapman]

Fair value (if I remember from FAR) is the price that you would receive for selling an asset to a willing buyer in an orderly arm's length transaction. Could also apply to having someone take a liability off your hands.

NRV is selling price less cost to sell.

Replacement cost is what you would currently spend to replace an item.

I believe (fair) market value is a term used for tax.

Passed - 2014

[Author]

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