Inventory valuation adjustment (IVA)

What is Inventory valuation adjustment (IVA)?

Inventory valuation adjustment (IVA) meaning An adjustment made in the national income and product accounts (NIPAs) to corporate profits and to proprietors’ income in order to remove inventory "profits," which are more like a capital-gain than profits from current production.

 

reference: BEA Bureau of Economic Analysis. US Department of Commerce

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