Net Realizable Value Accounts Receivable (NRVAR) is a term used in business to describe the value of accounts receivable that a company can reasonably expect to collect after subtracting any potential bad debts. In other words, it’s an estimate of how much money a company will realistically make off its current accounts receivable. NRVAR takes into account any costs associated with collecting the debt and ensures that only realistic potential revenue is used when making financial forecasts and decisions. By understanding their current NRVAR, businesses are better able to manage their cash flow and determine their financial position.