In business valuation analysis, Normalised Financial Statements refer to the situation where business valuation analysts adjust financial statements to account for extraordinary revenue and cost items, non-operating assets and liabilities for non-recurring or other unusual items to eliminate anomalies and facilitate comparisons. For example, the balance sheet should be adjusted by the revaluation of fixed assets to reflect current market value and non-operating assets excluded in applying the net asset method of business valuation. For the income statements, adjustments may include exclusion of one-off non- recurring expenditures, excluding expenditures not related to business operations, writing up some expenditure items which have been understated.