Glossary Of Accounting &Finance Terms-Alphabet N

[ N ]

Net realisable value

oThe estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
oNet realisable value refers to the net amount that an entity expects to realise from the sale of inventory in the ordinary course of business. Fair value reflects the amount for which the same inventory could be exchanged between knowledgeable and willing buyers and sellers in the marketplace. The former is an entity-specific value;the latter is not. Net realisable value for inventories may not equal fair value less costs to sell.

Non-current asset

oAn asset that does not meet the definition of a current asset.

Notes

oNotes contain information in addition to that presented in the balance sheet,income statement,statement of changes in equity and cash flow statement. Notes provide narrative descriptions or disaggregations of items disclosed in those statements and information about items that do not qualify for recognition in those statements.

Net assets

othe total of the fixed and current assets less the current liabilities of the business.

Net worth

othe “equity” of a business representing the total ordinary share capital made up of paid-up ordinary share capital and reserves owned by the ordinary shareholders.

Notional Principal

o a hypothetical amount on which swap payments are based. The notional principal in an interest rate swap is never paid or received.

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