Book Value is synonymous with shareholders’ equity, net worth, and net book value. It is essentially the difference between the total book value of a company’s assets and the total book value of its liabilities. Assets are generally recorded at historical cost, net of any accumulated depreciation allowance while liabilities are normally recorded at face value. Book value of a business entity is not an appropriate measure of the fair market value because of issues such as unrecorded intangible assets, understated values for the tangible assets, and unrecorded assets and liabilities. The longer a particular asset or liability is carried on the books, the greater the potential for a higher difference between the book value and fair market value. In business valuation analysis, the book values of assets and liabilities are revalued, adjusted and restated at fair market value through normalisation of the financial statements.