The Adjusted Book Value refers to the value of assets and liabilities in the statement of financial position after relevant revisions have been made either upwards or downwards from the respective book values. 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. The adjusted book value can form the basis of the asset-based methods in estimating the fair market value of a business.