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The Accounting Review Vol. 48 No. 2 1973

A Brief Exploration of the Goal Congruence of Net Realization Value.

James C. McKeown

Assistant Professor of Accountancy, University of Illinois, Urbana-Champaign. 1

Abstract

The article explores the goal congruence of net realizable value (NRV). The NRV model would have various properties after the evaluation of a decision at the end of period T to hold an asset. A correct decision was made if the NRV income for period T+1 is positive. The NRV income for period T+1 will be negative if an incorrect decision was made at time T. The decision at the end of period T to hold an asset may have been correct is the NRV income for period T+1 is negative. However, if it was correct, another condition must hold.

DOI
10.2308/tar-4504704
Volume
48
Issue
2
Pages
386-388
Language
en
Sources
openalex crossref

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