Which of the following does NOT correctly describe the concept of net realizable value (NRV)?
A) Estimates of NRV are based on the best evidence available at and shortly after the statement of financial position date.
B) NRV generally does not change over time.
C) NRV generally changes over time.
D) A new estimate of NRV is required at each statement of financial position date.

Question

Quizplus · Accepted Answer

NRV generally changes over time, and a new estimate is required at each statement of financial position date. Therefore, choice B is incorrect as it suggests that NRV does not change over time.

Which of the Following Does NOT Correctly Describe the Concept