@missbehaved.
I rule to remember is that Replacement cost can never go above NRV (ceiling) or below NRV-profit margin (floor) – when RPL Cost goes above NRV, the market value automatically assumes the NRV value (ceiling) and when it goes below the NRV-profit margin (floor), it the market value assumes that value as well. this process is considered finding your market value.
for example from the problem we just had:
RPL Cost = 150
NRV (Ceiling) = 240
NRV-profit margin (Floor) = 208.
when you order these you have:
NRV (Ceiling) = 240
NRV-profit margin (Floor) = 208
RPL Cost = 150
Since your RPL cannot go below the floor, your market value assumes the floor value of 208.
You then compare the market value with cost and take the lower of the two.
*prays i explained that clearly*
AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE
IM GOING TO BE A CPA!!!!!
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