The Asset-Based Approach is one of three approaches for determining the value of a business, business ownership interest, or security using one or more methods. The asset approach is underscored by the notion that the fair market value of business can be deduced as the net between the assets and liabilities. In applying the asset approach, business valuators adjust and restate the balance sheet at fair value. The essence of the adjustment is to report key items at fair market value and also to eliminate extraordinary items and take into consideration off- balance items which have not been accounted for in the statement of financial position. The typical adjustments may include revaluation of fixed assets to restate these at the fair market value. Receivables may also be reviewed to exclude potentially non- recoverable items. Intangible assets may be tested for impairment to establish whether the book values are higher than the recoverable (fair market) values. From the adjusted balance sheet, business valuators can estimate the adjusted net asset which serves as a proxy of the fair market value of a business from which the value of an interest in the business can also be estimated. There are several business valuation methods under the asset approach such as replacement cost method, adjusted book value, and the Adjusted Net Asset Value (ANAV) methods. The other two approaches to business valuation are the market approach and the income approach.