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Net realizable value



Net realizable value

We’ve been hearing a lot of talk about “net realizable value” being the new measure of a company’s health. This is a term that has been thrown around by many in the tech community and it’s the first time that I’ve heard it. I always knew of it, but it seemed like a technical term that only the CFO might understand, so I decided to learn a bit more about it.

Net realizable value is a term used in finance to describe the value of a company’s assets. It is the value of the assets minus the liabilities. Net realizable value measures the realizable value of a company’s assets, as opposed to book value, which can be artificially inflated by a company’s expenses and liabilities.

Net realisable value for domestic accounting

2. September 2020
Accounting Adam Hill

If, in such a scenario, the price at which the inventories can be sold falls below the net realisable value of the assets, resulting in a loss, the LCM method can be used to record the loss. Fair value is the selling price agreed between the willing buyer and the willing seller. The fair value of a stock is determined by the market in which it is traded. Fair value is also the value of an entity’s assets and liabilities when the financial statements of a subsidiary are consolidated with those of the parent. This video shows how to calculate the net realizable value of inventory.

It is common for property insurance policies to include a contractual condition that the lost property must actually be repaired or replaced before the replacement value can be paid. This prevents overinsurance, which contributes to arson and insurance fraud.

Under the lower of cost or market value (LCM) method, a company’s inventories are carried on the balance sheet at cost or market value. Historical cost is the value at which the inventory was acquired. The net realisable value of inventories is the estimated selling price in the ordinary course of business, less the reasonably anticipated costs of completion, sale and transport.

Replacement cost policies were introduced in the mid-20th century. Previously, fear of over-insurance limited their availability. Inventories are the current assets on the balance sheet that include all raw materials, work in progress and finished goods that the company has accumulated. It is often considered the most illiquid of all current assets – therefore it is not included in the numerator when calculating the quick ratio. Walmart is an American supermarket chain with sales of approximately $500 billion in fiscal 2018. Let’s assume that the market value of inventory (which is also an asset) for Walmart in fiscal 2018 is about $44 billion.

The forward price may differ from the fair value due to the short-term effects of supply and demand for the forward contract. The fair value always relates to the forward contract for the first month, not the contract for a subsequent month. In the context of inventories, net realizable value (NRV) is the estimated selling price in the ordinary course of business, less costs of completion, sale and transportation. A manufacturer’s inventory rarely consists only of finished goods. Inventories contain both raw materials for the production of goods and goods in production but not yet finished.

Thus, the net realizable value of the inventory is $12,000 (selling price $14,000 less $2,000 cost of goods sold). In this situation, the shares must be booked at the lower value: 1) Cost of $15,000 or 2) NRW of $12,000. In this situation, the balance sheet should show inventory of $12,000 and the income statement should show a loss of $3,000 due to inventory write-offs. The lowest value rule has traditionally been applied to companies whose products are becoming obsolete.

This approach assumes that companies value their shares conservatively and avoid overvaluation. The FASB recently published an update to its code and standards that affects companies that use average cost and FIFO methods of inventory accounting.

Entities using both methods for accounting for inventories must now use the lower of cost and net realisable value, which is more in line with IFRS rules. The LCM methodology is part of the GAAP rules used in the United States and international trade. Almost all assets are recorded at acquisition cost. GAAP prescribes many different methods for adjusting the cost of assets in subsequent accounting periods. The LCM method takes into account the fact that the value of the raw material can fluctuate.

If we cannot determine the market value, the NRW can be used as an approximation. GAAP previously required auditors to use the lower of cost or market value to measure inventory on the balance sheet. Under the prudent person rule, when the market price of inventories falls below their original value, auditors were required to use the market price to value the inventories. The market price was determined as the replacement value or the NRW, whichever is lower.

Replacement cost is the actual cost to restore an item or structure to the condition it was in before the loss. This is not necessarily the market value of the item and is generally distinguished from the actual present value payment, which includes a deduction for depreciation.

Recognize creative accounting in the balance sheet

The net realisable value of inventories must be determined before the lower of cost and market value can be reliably determined. In the insurance industry, replacement cost or replacement value is one of the many methods used to determine the value of an insured item.

Net realizable value is an important measure in accounting, which is lower than cost or market value. The market approach requires that an entity’s inventories be carried in the balance sheet at a value lower than historical cost or market value. If the market value of the inventories is not known, net realisable value can be used as an approximation of the market value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale or disposal. It is used to determine the lowest cost or market for available inventory.{“@context”:”https://schema.org”,”@type”:”FAQPage”,”mainEntity”:[{“@type”:”Question”,”name”:”How do you calculate net realizable value?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” Net realizable value is the estimated selling price of a product or service less the cost of obtaining and delivering it to customers.”}},{“@type”:”Question”,”name”:”What is meant by net realizable value?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” Net realizable value is the estimated selling price of a company’s inventory, less the cost of goods sold.”}},{“@type”:”Question”,”name”:”What is NRV formula?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” NRV formula is a mathematical equation that calculates the net present value of an investment.”}}]}

Frequently Asked Questions

How do you calculate net realizable value?

Net realizable value is the estimated selling price of a product or service less the cost of obtaining and delivering it to customers.

What is meant by net realizable value?

Net realizable value is the estimated selling price of a company’s inventory, less the cost of goods sold.

What is NRV formula?

NRV formula is a mathematical equation that calculates the net present value of an investment.

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Enchanted Woods and Forest Slots: Exploring the Mystical Realm of Nature




In the realm of online casino gaming, a genre taps into the enchanting allure of nature and woodland mysteries: Forest Slots and Enchanted Woods Slots. These slots transport players into the heart of lush forests, where mythical creatures, ancient trees, and hidden treasures await discovery – play it here.

In this article, we will delve into the captivating world of Forest Slots and Enchanted Woods Slots, exploring their captivating features, woodland themes, and their magical gaming experience.

Immersed in the Wonder of Nature with Forest Slots

Forest Slots and Enchanted Woods Slots represent a captivating subgenre within online slot games, drawing inspiration from forests’ lush beauty and mystical aura. They offer a fusion of natural aesthetics, woodland creatures, and the potential for substantial real-money rewards. These slots appeal to fans of nature and wildlife and players seeking an escape into a world of tranquility and enchantment.

Key Features of Forest Slots and Enchanted Woods Slots

Lush Woodland Aesthetics

The standout feature of Forest Slots and Enchanted Woods Slots is their ability to recreate the serene and mystical ambiance of the forest. These games often boast towering trees, moss-covered stones, and enchanting glades—the graphics and animations transport players to a world of natural wonders, creating an immersive gaming experience.

Iconic Forest Symbols

Forest Slots and Enchanted Woods Slots feature symbols emblematic of the woodland realm. Players can expect to encounter woodland creatures like deer and owls, ancient trees, magical toadstools, and the elusive fairies and sprites that inhabit these enchanted woods. These symbols add to the game’s visual allure and play a critical role in determining winning combinations and triggering bonus features.

Woodland Creatures and Mystical Beings

To enhance the forest experience, these slots often incorporate encounters with mythical creatures and mystical woodland beings. Players may interact with fairies, elves, unicorns, and other fantastical inhabitants of the enchanted woods. These interactions add an extra layer of enchantment and engagement to the gameplay, providing players with a sense of wonder and magic.


Forest Magic Bonus Rounds

In Forest Slots and Enchanted Woods Slots, players often engage in bonus rounds that tap into the mystical energies of the forest. These may involve participating in magical ceremonies, uncovering hidden pathways, or seeking the blessings of ancient forest guardians. These bonus rounds immerse players in the enchanting world of the forest, intensifying the gaming experience.

Themes in Forest Slots and Enchanted Woods Slots

These slots come in a variety of themes, each offering a different woodland adventure:

Fairy Glades

These slots focus on the magical realms inhabited by fairies and sprites, where players can explore glades, seek hidden treasures, and receive the blessings of forest spirits.

Mystical Creatures

In these games, players encounter mythical creatures like unicorns, centaurs, and magical creatures as they explore the forest’s depths in search of hidden wonders.

Ancient Trees and Guardians

These slots revolve around the wisdom and magic of ancient trees, where players seek out the guidance and blessings of these wise woodland sentinels.

Woodland Treasures

In these games, players embark on quests to discover hidden treasures and uncover the riches that lie within the heart of the enchanted woods.

Winning Real Money in Forest Slots and Enchanted Woods Slots

While the immersive themes and woodland aesthetics are the main attractions, players can also win real money while enjoying Forest Slots and Enchanted Woods Slots. These games offer various opportunities to form winning combinations, trigger bonus rounds, and accumulate substantial payouts, much like traditional slots.



Forest Slots and Enchanted Woods Slots offer a uniquely immersive experience within online casino gaming. Whether you’re a fan of magical glades, encounters with mystical creatures, seeking the wisdom of ancient trees, or embarking on quests for woodland treasures, there’s a Forest Slot or Enchanted Woods Slot that can transport you to the heart of nature’s mysteries. With enchanting visuals, iconic woodland symbols, and engaging gameplay, these slots provide a truly unforgettable gaming experience. So, step into the enchanted woods and let the magic of nature guide you on a journey of wonder and discovery!

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Acquiring Sweeps Coins in Sweeptastic for 2023





Sweeptastic is a newly launched sweepstakes casino that is currently in the early stages of establishing itself in the industry. Although there are areas, such as its game library and user interface, that are still undergoing refinement, the casino shows potential, particularly with its attractive welcome offer and continuous promotions. Despite a somewhat limited range of games, Sweptastic offers a decent entry point for players looking to explore the world of sweepstakes casinos.

Legitimacy of Sweeptastic Casino

Assessing the legitimacy of an online gaming site involves subjective judgment, but there are signs and factors that can help determine the intention behind a platform.

One important consideration is the transparency of the owner company, and in the case of Sweeptastic, this information is readily available on the casino’s site – Heuston Gaming Limited with registration number 104624.

Additionally, Sweeptastic has taken steps to enhance transparency and player safety. They provide a page displaying the Return to Player (RTP) of all available games and have a Responsible Gaming page that discusses how players can have the best gaming experience while maintaining control over their habits.

With these measures, including comprehensive information and tools for self-control, Sweeptastic demonstrates a commitment to ensuring the safety and well-being of its players.


Sweptastic has a straightforward system with two virtual currencies: Gold Coins and Sweepstakes Coins, also known as Lucky Coins.

Lucky Coins (Gold Coins)

In Sweptastic, Gold Coins go by the name Lucky Coins. These coins are exclusively for playing games for fun and hold no real-world value. While the casino generously provides them for free, you also have the option to purchase additional Lucky Coins. They serve as a useful tool for exploring games before committing your valuable Sweepstakes Coins.

Sweepstakes Coins

Critical to the sweepstakes casino experience, Sweepstakes Coins are the virtual currency that transforms your in-game winnings into real money. Sweptastic retains the original name, emphasizing that winnings in Sweepstakes Coins can be redeemed for actual cash. Notably, these coins cannot be bought; however, Sweeptastic offers them abundantly through various promotions or as a bonus when you purchase Lucky Coins.

Promotional Offers at Sweeptastic

Promotions at Sweeptastic are designed to set high standards, offering players ample opportunities to enjoy their favorite games and potentially win real money rewards without the need for any purchases. Let’s delve into the details of each promotional offer:

Signup Bonus

Sweeptastic stands out by providing one of the most generous free welcome bonuses in the sweepstakes casino realm – a whopping 27,777 Gold Coins + 10 Sweepstakes Coins.


At the same time, the full offer requires account verification; merely registering grants you an initial reward of 10,000 Lucky Coins (Gold Coins).

Daily Login

Acknowledging active members, Sweeptastic adopts the common practice of a Daily Login Bonus but distinguishes itself with a substantial amount of freebies. Simply log in each day, and the casino automatically boosts your balance with 1,000 Lucky Coins.

Happy Hours

For early birds, Sweeptastic introduces Happy Hours, generously gifting 3,000 Lucky Coins every morning between 7 am and 10 am. This bonus is seamlessly added to your account upon login, requiring no additional steps or claims.

First Purchase Offer

While Sweeptastic lavishes players with substantial free coins, the extensive gaming catalog may lead to their quick depletion. In anticipation of this, the social casino presents two exclusive offers for your initial coin purchase:

  • $17.49 pack – 25,000 LC + 25 SC (30% off)
  • $29.49 pack – 45,000 LC + 45 SC (35% off)

Purchase Methods

Now that you’re acquainted with Sweeptastic’s virtual coins let’s explore the options available if you decide to make a purchase on this casino-style gaming platform. Sweeptastic offers six predefined Lucky Coin bundles, each accompanied by complimentary Sweepstakes Coins. You can make purchases using widely accepted bank cards like Visa, Mastercard, and American Express, among others. Additionally, popular online payment providers are supported, ensuring a seamless transaction experience based on our testing.

Redeeming Prizes

For many players, the most exciting aspect is whether Sweptastic truly pays out real cash prizes. The answer is a resounding yes, and the redemption process is notably faster compared to other sweepstakes casinos. You have various redemption options, including bank transfers, gift cards, and even merchandise if you prefer tangible rewards.


It’s crucial to note that to complete the redemption process; you must verify your account through KYC (providing documents for identity, address, phone, and bank account verification), wager the Sweepstakes Coins at least once (as they are received as a bonus), and have a Sweepstakes Coins balance equivalent to at least $100.


Since its inception, Sweeptastic has set the standard for how things should be done in the sweepstakes casino world. Whether it’s bonuses, games, or player care, this social casino brand truly stands out.

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Enhancing User Engagement And App Discovery: The Impact of User-Friendly Interfaces in App Catalogs




Mobile applications have become an integral part of our daily lives. From social networking to productivity tools, there is an app for everything. With millions of apps available across various platforms, app catalogs are crucial in helping users discover new applications. However, the success of these catalogs greatly depends on user experience, particularly the user-friendliness of their interfaces.

The Significance of User-Friendly Interfaces

User-friendly interfaces are essential elements of app catalogs as they directly influence how users interact with and explore the available apps. A well-designed and intuitive interface can significantly enhance the overall user experience. Here are some key factors that highlight the significance of user-friendly interfaces:

1.1 Navigational Ease

One of the primary benefits of a user-friendly interface is navigational ease. When users can easily browse through app categories, search for specific apps, and access relevant information, they are more likely to engage with the catalog for longer periods.

1.2 Visual Appeal

The visual appeal of an app catalog matters. An attractive and well-organized layout can captivate users and encourage them to explore further. A cluttered or confusing interface, on the other hand, can deter users from using the catalog.

1.3 User Feedback

User-friendly interfaces often include features for user feedback, such as ratings and reviews. This feedback helps users make informed decisions about which apps to download, enhancing their overall experience.

Comprehensive App Collection

APPiX360’s extensive app collection caters to a wide array of interests and needs. The platform regularly updates its offerings with the latest and most popular apps, ensuring users have access to the newest trends and tools. The importance of user reviews and ratings in aiding informed decisions is a testament to the platform’s user-centric approach. The platform’s commitment to ensuring safe downloads is exemplified through its stringent vetting process, which can be illustrated through the safe downloading of the Pin-up app.

Impact on User Engagement

User engagement is a crucial metric for app catalogs. It measures how actively users interact with the catalog, and user-friendly interfaces can have a profound impact on engagement levels:

2.1 Longer Time Spent

A user-friendly interface encourages users to explore more apps, leading to longer sessions within the catalog. When users find it easy to navigate, they are likely to spend more time searching for new apps and discovering content.

2.2 Higher Retention Rates

Apps with user-friendly interfaces tend to have higher retention rates. Users are more likely to return to the catalog regularly if they had a positive experience during their previous visits. This consistent engagement benefits both users and app developers.

2.3 Increased App Downloads

Improved user engagement often leads to an increase in app downloads. When users feel comfortable and confident while using the catalog, they are more likely to take the next step and download apps that pique their interest.


Impact on App Discovery

App discovery is a critical aspect of app catalogs, as it directly affects an app’s success. User-friendly interfaces play a significant role in enhancing the app discovery process:

3.1 Effective Search and Filtering

User-friendly catalogs offer efficient search and filtering options. Users can easily narrow down their choices based on categories, keywords, or ratings. This simplifies the app discovery process and helps users find relevant apps more quickly.

3.2 Personalized Recommendations

Many app catalogs use user data to provide personalized app recommendations. A user-friendly interface makes it easier for catalogs to collect and analyze user preferences, leading to more accurate and appealing app suggestions.

3.3 Social Integration

User-friendly interfaces often incorporate social features, such as sharing and following. These features enable users to discover apps recommended by their friends or influencers, fostering a sense of community within the catalog.


The Pin-Up App Download Experience

As we explore the impact of user-friendly interfaces, let’s take a closer look at the Pin-Up app download experience as an example. Pin-Up is an online casino and sports betting platform that offers a mobile app for users to enjoy their favorite games and place bets conveniently.

4.1 Navigational Simplicity

The Pin-Up app catalog boasts a user-friendly interface that simplifies the navigation process. Users can easily access different sections of the app, such as casino games, sports betting, and promotions, through a well-organized menu.

4.2 Visual Appeal

The catalog’s visual design is visually appealing, featuring vibrant colors and clear graphics. This visually engaging interface captures users’ attention and encourages them to explore the app further.

4.3 User Feedback

Pin-Up’s user-friendly interface incorporates user feedback in the form of reviews and ratings for games and sports events. This feedback helps users make informed decisions about what to play or bet on, enhancing their overall experience.


In conclusion, user-friendly interfaces are instrumental in shaping the success of app catalogs by positively impacting user engagement and app discovery. Navigational ease, visual appeal, and user feedback are key elements that contribute to a user-friendly experience. As demonstrated by the Pin-Up app download experience, a well-designed interface can enhance the overall user journey, leading to higher user engagement, increased app downloads, and improved app discovery. App catalogs that prioritize user-friendliness are more likely to thrive in the competitive digital landscape, benefiting both users and developers alike.

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