Net realisable value test
Compare carrying amount to net realisable value, and measure the write-down to recognise.
Result
- Net realisable value
- 66500.00
- Write-down
- 8750.00
- Carrying amount after
- 66500.00
The method
- Net realisable value = (selling price less costs to complete less selling costs) × quantity.
- Inventory is measured at the lower of cost and net realisable value, and the shortfall is a write-down recognised in the same period.
Built forAn accountant reviewing an entry or balance before close
When you need it
You have connected figures that need testing before they enter the close file. Compare carrying amount to net realisable value, and measure the write-down to recognise.
The decision it supports
Use the result to decide whether the work can be accepted or a difference or classification needs tracing. The tool shows its method beside the result so you can review it.
What you receive
Net realisable value test result
A shareable interactive result with findings, calculation method and an Excel workpaper carrying the same figures.
An example you can inspect
A ready-to-run example
The tool opens with: Quantity = 350, Carrying amount = 75250.00, Selling price per unit = 210.00, Costs to complete per unit = 12.00. Change any value to see its effect immediately.
Continue the workflow
- Learn the treatment behind the toolAccount required
- Open the Cost Accountant trackAvailable now