Suppose y/e inventory is $100k before management carries out an NRV review – so for the draft financial statements, the double entry is: Dr Closing inventory (asset) $100k Cr Closing inventory (P/L) $100k
Then NRV exercise shows that the NRV of some product/line items is $2k less than cost, so journal adjustment is: Dr Closing inventory (P/L) $2k Cr Closing inventory (asset) $2k
If NRV is > cost there is no adjustment – inventory is already stated at the lower amount. You can “revalue” inventory upwards in anticipation of a future sale – you have to wait until you sell it (when you recognise revenue).