realisable value

Stocks are stated at the lower of cost and net realisable value.

Such stocks should therefore be written down when assessing net realisable value.

But his mind would only turn over and over the realisable value of his resources.

Net realisable value is based on estimated selling prices less further costs to completion and disposal.

Thus stocks need to be stated at cost or, if lower, at net realisable value.

It will normally be necessary to seek expert advice on the realisable values of all the major assets.

In the financial accounts, of course, land will usually be stated at the lower of cost or net realisable value.

'At present we are carrying out a detailed review of the loan book to establish its likely realisable value.

The net realisable value of an item shall be determined by:

The properties were previously shown at the lower of cost and net realisable value, as required by the Companies Act.

It requires that such transfers should be made at the lower of cost and net realisable value at the date of transfer.

Provisions to take current assets to net realisable value must be written back to the extent that the reasons for making the provision no longer apply.

The comparison of cost and net realisable value needs to be made in respect of each item of stock separately.

It is standard under the historical cost basis to write down the value of inventory (stock) to a lower cost and net realisable value.

As stated earlier the value of inventories must be recorded at the lower of cost or net realisable value.

Other precious metal stocks owned by the group, which are unhedged, are valued at the lower of cost and net realisable value.

Cost comprises materials, labour and production overheads and net realisable value is based on selling prices, less distribution costs."

Cost comprises the purchase consideration including professional fees and net realisable value is based on the anticipated net selling prices.

IAS 2 requires that those assets that are considered inventory should be recorded at the lower of cost or net realisable value.

Where the transfer is at net realisable value, the Companies Act disclosure requirements for a fixed asset carried at a valuation will apply.

Costs increased 262% to $43m due largely to a $26.8m write-off of capitalised software development costs in excess of estimated net realisable value.

To compare the total realisable value of stocks with the total cost could result in an unacceptable setting off of foreseeable losses against unrealised profits.

Realisable value will be identified on a going concern basis and by reference to a moving average of prices obtained from customers in the ordinary course of trade.

The initial calculation of provisions to reduce stocks from cost to net realisable value may often be made by the use of formulae based on predetermined criteria.

For example, fixed assets are normally valued at cost, less provision for depreciation, and current assets at cost or net realisable value, whichever is the lower.