The Adjusted Book Value Method is one of the business valuation methods under the asset approach which business valuation analysts apply to determine the fair market value of a business, part thereof or shares. 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. Once the statement of financial position (balance sheet) has been adjusted, business valuators can proceed to estimate the fair market value of the business or the interest being valued by computing the net asset which serve as a proxy of the value of the business from which the value of an interest in the business can be estimated.