Question: A major difference between fair value and net realisable value is that the expected costs to sell an item are deducted to determine NRV but

A major difference between fair value and net realisable value is that the expected costs to sell an item are deducted to determine NRV but are not deducted for fair value. Also, fair value involves an orderly market and willing market participants to the transaction, whereas NRV does not.

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