what is meant by net realizable value of accounts receivable 
nrv for accounts receivable is a reference to the net amount of accounts receivable that will be collected this is the gross amount of accounts receivable less any allowance for doubtful accounts reducing the total amount of a r by the amount the company does not expect to receive nrv for accounts receivable is a conservative method of reducing a r to only the proceeds the company thinks they will get the bottom linenet realizable value is the net amount a company is able to sell an asset for or collect as part of an existing agreement nrv is calculated as the difference between the gross proceeds and associated transaction costs because nrv considers items that decrease the net benefit a company receives it is often considered a conservative accounting approach for this reason it is often acceptable for use in various situations under both gaap and ifrs accounting 