Net Realisable Value (NRV)

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..... (Applies to both WIP FG) (XXX) Net Realisable Value XXX The cost of inventories may not be recoverable if those inventories are damaged, if they have become wholly or partially obsolete, or if their selling prices have declined. The cost of inventories may also not be recoverable if the estimated costs of completion .....

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..... , for example, finished goods, or all the inventories in a particular operating segment.] Estimates of net realisable value are based on the most reliable evidence available at the time the estimates are made , of the amount the inventories are expected to realise. These estimates take into consideration fluctuations of price or cost directly relating to events occurring after the end of .....

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..... entories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. However, when a decline in the price of materials indicates that the cost of the finished products exceeds net realisable value, the materials are written down to net realisable value. In such circumstances, the replacement cost of the materials may be the .....

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