Net realisable value: related pages
Raw materials Raw materials are the part of stocks that have been purchased for further processing but on which no work has yet been done.
Stock (inventory) Current assets held for sale, or for processing and subsequent re-sale.
WIP The part of stocks (inventory) that has had some work done on it, but which has not yet been made into goods ready for sale.
FIFO A method of valuing stocks (inventory) for accounting purposes. Stocks issued are assumed to be the oldest available.
LIFO A method of valuing stocks (inventory) by assuming that the most recent purchases are used first.
Historical cost An asset value based on the actual purchase cost, or the accounting principle that requires this.
Fair value The value of an asset or liability in an arms length transaction between unrelated willing and knowledgeable parties. A concept used in many accounting standards including the IFRSs.
Copyright Graeme Pietersz © 2005-2019
