netrealiseerimisväärtusele

Netrealiseerimisväärtus refers to the estimated selling price of an asset in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. It is a key concept in accounting, particularly for valuing inventory. The principle is that inventory should not be carried on the balance sheet at an amount greater than its expected realizable value. This means that if the cost to produce or acquire inventory exceeds what the company can reasonably expect to sell it for, the inventory's value must be written down.

The calculation involves determining the selling price that would normally be achieved, then subtracting the direct costs associated with finishing the product (e.g., labor, materials for further processing) and the expenses incurred in selling the product (e.g., commissions, shipping). If the net realizable value is lower than the original cost of the inventory, an impairment loss is recognized, reducing the asset's carrying amount on the balance sheet and impacting the income statement. This accounting treatment ensures that financial statements accurately reflect the economic reality of inventory holdings.