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  • Monday, April 28, 2025
  • The Financial Encyclopedia
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  • April 11, 2020
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Net Realizable Value

The net monetary amount that would be received if an asset is sold today in the ordinary course of business in an arm’s length transaction. More specifically, it is the selling price (sale revenues) of the asset minus selling costs (provided that selling costs are reasonable and reflect market norms and conditions). By nature, this value is an exit value, because it captures the price received at the time the asset leaves (exits) the seller’s control.


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