The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

NET REALIZABLE VALUE OF ASSET Definition & Legal Meaning

Definition & Citations:

1. Asset’s selling price minus sale transaction expenses minus expenses for bringing the asset to a saleable state. In the ‘lower of cost or market value’ rule applied to inventory valuation, this is the maximum amount. 2. Asset’s expected future earnings minus asset expenses in owning, maintaining, operating, and, in the case of land, developing the asset.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.