Criminal Law

Public Defender vs. Private Attorney: Understanding the Benefits of Hiring a Criminal Defense Lawyer

In the intricate realm of criminal law, the choice between a public defender and a private attorney can significantly impact the outcome of your case. At The Law Office of Zapicchi & Liller LLP, we understand the nuances and complexities that surround criminal cases in New Jersey.

Here we’ll delve into the differences between a public defender and a private attorney, shedding light on the advantages of opting for personalized legal counsel.

Criminal Law

4 Common Drug Possession Defenses

To deter their usage and distribution, the penalties and punishments for drug possession can be incredibly harsh. Defendants found guilty can end up facing hefty fines and years of jail time — but even if they are charged with possessing drugs, that doesn’t mean they are automatically guilty. There are actually many ways that you can defend yourself in court from a possession charge, so let’s take a look at four common drug possession defenses.

Criminal Law

NJ Supreme Court Decision on Cannabis Offenses and Pre-Trial Intervention

The New Jersey Supreme Court recently issued a ruling that has significant implications for those with prior cannabis offenses. The court’s decision allows people with previous cannabis offenses to still be eligible for diversionary programs such as pre-trial intervention. This is an important step forward in the state’s efforts to reduce the criminal justice burden on individuals convicted of minor marijuana offenses.

Criminal Law

What to Know About Disorderly Conduct Charges in New Jersey

A variety of laws exist to deter and punish harmful behavior, including disorderly person’s offenses. This law embodies an assortment of aggressive actions and, as a result, can include and punish forms of behavior that you might not expect. Here’s an overview of what a disorderly person’s offense is in New Jersey law and the penalties the accused can expect to receive.

Criminal Law

Understanding the Penalties of a Forgery Charge in New Jersey

Is forging a signature a crime? Absolutely — and it can result in serious consequences. All states have their own forgery laws, and New Jersey is no exception. If you’re interested in learning more about the state’s penalties for forgery and why forging a signature is a crime, here’s what you need to know.

Criminal Law

Understanding Sexual Assault Charges in New Jersey

In New Jersey, sexual assault is a felony with varying consequences and fines depending on the nature of the offense. If you’ve been charged with sexual assault in New Jersey, it’s important to understand the situation you’re facing and what you can do to prepare. It’s also wise to get a hold of a criminal defense attorney in NJ that can give you the right legal advice to prepare for your case. Take advantage of the knowledge of The Law Offices of Zapicchi and Liller to help you understand what to do if you’re up against NJ’s sexual assault laws.

Criminal Law

Understanding Drug Charges in New Jersey

To deter individuals from using, creating, and distributing illegal substances, felony drug charges are a serious offense in New Jersey. However, there isn’t a single penalty for every drug offense. Many nuances that can alter the severity of a sentence for drug charges. Here’s a look at the NJ drug laws and penalties and the factors that influence them.

Criminal Law

What Happens If You Use an Illegal Gun to Defend Yourself in New Jersey?

In instances where a defendant proves they hurt someone out of self-preservation, they can plead for self-defense. However, what happens if the gun they used to defend themself was illegal? Many firearms are not permitted for civilian use and have been outlawed, meaning that those who are found to have used them can be severely punished. To understand this unusual legal puzzle, here is everything you need to know about using illegal guns in self-defense.


Difference Between Fair Value & Net Realizable Value

The Company maintains a reserve for obsolete inventory and generally makes inventory value adjustments against the reserve. Overall, we calculated that the NRV of inventory assessing each item individually was only $186,872. Recognizing that loss in the year incurred (rather than waiting for them to sell, if ever) brought gross profit down from $807,296 to $755,481, and of course that reduced net income by the same amount (second column). By adjusting the inventory down, the balance sheet value of the asset, Merchandise Inventory, is restated at a more conservative number. Notice that we never adjust inventory up to fair market value, only downward.

To do so, the company must deduct these costs from the money they generate after selling a TV. Finally, a business accountant will reveal the NRV on the company balance sheet. The answer to this concerns the business not taking a risky approach. Instead, the accountant should have a “worst-case” scenario mentality during the valuation process to mitigate future company risks. A key factor in estimating the NRV is the most recent selling price. Such prices typically reflect conditions present at the reporting date, hence they are treated as adjusting events after the reporting period (IAS 2.30).

  • The practice of avoiding the overstatement of assets is called accounting conservatism.
  • Under the net realizable value method, joint costs are allocated based on the total sales value less costs that can be separable for each product.
  • The company states that as part of its calculation of inventory, the company wrote-down $592 million.
  • The allowance for doubtful accounts is a balance maintained to offset accounts receivable and is an estimate of how much of accounts receivable will not be collected at any given time.
  • Thus, the figure reported in the asset section of the balance sheet is lower than the total amount of receivables held by the company.
  • Adjustments to the Allowance account are reported on the income statement as bad debts expense.

Next, we’ll look at how inventory is presented on the financial statements, along with disclosures and an analysis of what happens when inventory is under or overstated. Included in cost of goods sold for the years ended June 30, 2019, and 2018, are inventory write-offs of $0 and $692,000, respectively. The write-offs reflect inventories related to discontinued product lines, excess repair parts, product rejected for quality standards, and other non-performing inventories. Let’s recap the effect of the different methods of applying COGS, gross profit, and ultimately, net income, assuming that total selling, general, and administrative expenses of Geyer Co. are $735,000.

Examples of NRV

No matter which method you use to find the NRV, the value you find must fit the conservative method of accounting reporting. As mentioned above, the net sales value is a conservative method; its goal is to use the least profitable method when doing accounting work. The business will update its balance sheet and determine the net realizable value as part of its accounting process. For instance, inventory is recognized on the balance sheet at either the historical cost or the market value – whichever is lower, so companies cannot overstate the inventory’s value. The net realizable value (NRV) is used to appraise the value of an asset, namely inventory and accounts receivable (A/R). Net realizable value can also refer to the aggregate total of the ending balances in the trade accounts receivable account and the offsetting allowance for doubtful accounts.

  • Accounting conservatism is a principle that requires company accounts to be prepared with caution and high degrees of verification.
  • The very nature of such uncertainty forces the accounting process to address such challenges in some logical fashion.
  • To prevent this from happening, you need to reflect the more accurate inventory balance and recognize an inventory impairment loss in the amount of $500.
  • Many business transactions allow for judgment or discretion when choosing an accounting method.

Keep in mind that this should follow the conservatism principle in accounting. Other times NRV is used by accountants to make sure an asset’s value isn’t overstated on the balance sheet. If you’re a CPA, you’ll come across NRV within cost accounting, inventory, and accounts receivable.

In addition to a good becoming outdated, broad markets may be interested in substitute products, advanced products, or cheaper products. Competition always runs the risk of supplanting a good’s market position, even if both goods are still relevant and highly functioning. Depending on the industry the company is it, the company may decide to accept a certain amount of uncollectable sales. The company may also lack the resources to pursue delinquent receivables. The NRV plays a vital role in this because after the split off point, the NRV is used as an allocation basis of the joint cost of the product.

Use NetSuite to Manage Your Company’s Finances

As such, it’s an accounting policy choice that needs consistent application. Under the net realizable value method, joint costs are allocated based on the total sales value less costs that can be separable for each product. Once you have the net realizable value for each product, you need to figure out what percentage the net realizable value is out of the total amount.

What Is Net Realizable Value? How to Calculate and Examples

Two of the largest assets that a company may list on a balance sheet are accounts receivable and inventory. NRV is a valuation method used in both generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS). Net realizable value (NRV) is the amount by which the estimated selling price of an asset exceeds the sum of any additional costs expected to be incurred on the sale of the asset. NRV may be calculated for any class of assets but it has significant importance in the valuation of inventory.

How to Calculate NRV

Suppose a furniture business wants to sell some of its furniture to a local mall. To make sense of this, let’s imagine a scenario where a business produces a type of nest basket for sale. The net realizable value, called the net sales value, is used for several situations.

The former is specific to an entity, while the latter isn’t (see IAS 2.7). Different companies may be exposed to different risks and business impacts that are factored into NRV calculations differently. For example, certain industries may necessitate dealing with customers that have riskier credit profiles, thus forcing the company to experience larger write-off allowances. What if the economic benefit the company will receive when trading this asset is below the current book value? Hopefully, when calculating the net realizable value, the business does not find out that the value has declined past what it cost to make it.

If you look at the formula, it is worth mentioning that to get the estimated selling price; you should find out how many products you have multiplied by the selling price of each good to get the total. One of the primary uses of net realizable value is inventory valuation in accounting. If a business buys goods it needs to make a product that it can sell, it might suffer some extra costs through this process. Materials and other supplies intended for production are not written down below their purchase price, especially if the final products they’re used in are projected to sell at or above cost. Thus, a write-down isn’t permitted solely because of a decline in raw material prices or if expected profit margins are unsatisfactory. However, if an entity foresees it won’t recover the cost of finished products, then the materials are written down to their NRV, potentially using the replacement cost as a base (IAS 2.32).

Applying LCNRV to total inventory gave us a NRV of $274,610 (see Inventory List in prior reading) which was higher than total cost, so there would be no adjustment necessary. We just left each inventory item listed at cost, even though some of the items had an NRV less than cost (first column). Knowledgeable decision makers understand learn about finance degrees and certifications that some degree of uncertainty exists with all such balances. However, a very specific figure does appear on Dell’s balance sheet. By including this amount, company officials are asserting that they have obtained sufficient evidence to provide reasonable assurance that the amount collected will not be a materially different figure2.

However, at the end of the accounting year the inventory can be sold for only $14,000 after it spends $2,000 for packaging, sales commissions, and shipping. Therefore, the net realizable value of the inventory is $12,000 (selling price of $14,000 minus $2,000 of costs to dispose of the goods). In that situation the inventory must be reported at the lower of 1) the cost of $15,000, or 2) the NRV of $12,000. In this situation, the inventory should be reported on the balance sheet at $12,000, and the income statement should report a loss of $3,000 due to the write-down of inventory. Net realizable value is a valuation method used to value assets on a balance sheet.

If the loss is material, you may want to segregate it in a separate loss account, which more easily draws the attention of a reader of a company’s financial statements. Net realizable value (NRV) is the value for which an asset can be sold, minus the estimated costs of selling or discarding the asset. The NRV is commonly used in the estimation of the value of ending inventory or accounts receivable. This was updated in 2015 to where companies must now use the lower of cost or NRV method, which is more consistent with IFRS rules. In essence, the term “market” has been replaced with “net realizable value.”

The aggregate, separate effect of the latter (but not the former) represents the effect of an accounting change that must be disclosed if material. There are a few steps involved in calculating the net realizable value for an asset. First, you’ll have to determine the expected selling price or the market value.

If we lowered the cost to $30 on our books and sold them for $70 minus the $20 it takes to make them saleable, we’d make a normal profit. In other words, market was the price at which you could currently buy it from your suppliers. Except, when you were doing the LCM calculation, if that market price was higher than net realizable value (NRV), you had to use NRV. If the market price was lower than NRV minus a normal profit margin, you had to use NRV minus a normal profit margin. When using NRV as a valuation method, it is clear that the overall value of goods has a heavy influence.

Equally as important, every party analyzing the resulting statements must possess the knowledge necessary to understand the multitude of reported figures and explanations. If appropriate decisions are to result based on this information, both the preparer and the reader need an in-depth knowledge of U.S. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. What people want and are willing to pay for brings up a product or an industry’s value.

Criminal Law

What to Do if You’ve Been Charged With Resisting Arrest

While one might search for Mercer County criminal lawyers after an arrest, there is another reason they will want an attorney: resisting arrest. Those who resist their arrest can be found guilty of another crime that will be compounded with the initial punishment. If someone intentionally prevents or attempts to prevent a police officer from effecting an arrest, they will be guilty of a disorderly person’s offense. However, it is possible for individuals charged with this misdemeanor to prove their innocence and evade charges. Here is what steps you should take if you are ever charged with resisting arrest.

Seek Help From a Legal Professional

It is vital to seek legal help as soon as you can to seek protection. Reach out to a law firm to help you navigate the confusing legal world. A skilled attorney can help inform you of your constitutional rights, defend you in the courtroom, and provide other beneficial services.

Provide a Detailed Account of the Arrest

One of the important actions you can take to help your attorney during a charge pertaining to resisting arrest is providing as much information about the incident as possible. The prosecutor in charge of the case must prove in court that the defendant attempted to resist arrest. Telling your defense attorney about the details of the incident as thoroughly as possible can help them disprove the prosecution’s claims, so try to recall as much as you possibly can about the arrest. Here are specific details you should try to recall:

  • Whether or not the police announced their intention to arrest you. If the officer did not, then you would not have known, as demonstrated in State v. Kane. Those who did not know they were under arrest can evade a disorderly person’s arrest charge.
  • If you knowingly knew the purpose of the arrest and chose to resist, then the prosecution can make a case. Otherwise, your attorney can make a case for you.
  • Sometimes, the defendant might unintentionally resist arrest due to factors such as fear or pain causing them to stiffen or shake. In these circumstances, the defense can argue the resistance was not intentional and thus not intended.
  • Keep track of everything the arresting officers did during your arrest. If they did something inappropriate or out of line, then their misconduct can serve as your defense.

Know What Will Not Help Your Attorney

While several key details can help in dropping the charge of resisting arrest, several factors will not. Below are some facets of the incident that can not be used in your defense.

  • An unjust arrest does not eliminate a disorderly person’s offense. For instance, even if you can prove you legally purchased an item with a receipt when you were arrested for theft, resisting arrest is still a crime because the law discourages potential escalation in violence.
  • If police use excessive force, it can be justified if it was necessary to subdue a defendant who resisted arrest.

If you need the assistance of DUI lawyers in Burlington, NJ, or other parts of The Garden State, contact The Law Offices of Zapicchi and Liller LLP today.