Net realizable value (NRV) is a measure of a fixed or current asset's worth when held in inventory, in the field of accounting. NRV is part of the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. Net realizable value is generally equal to the selling price of the inventory goods less the selling costs. Therefore, it is expected sales price less selling costs. NRV prevents overstating or understating of an assets value. NRV is the price cap when using the Lower of Cost or Market Rule.