2.17 Hypothetical Liquidation at Book Value

Hypothetical liquidation at book value (HLBV) represents a method for allocating the period’s (comprehensive) income or loss between controlling and noncontrolling interest at the end of each reporting period. Under the HLBV method, changes in an owner’s claim on the net assets of a reporting entity’s subsidiary that would result from the period-end hypothetical liquidation of the subsidiary at book value form the basis for allocating the subsidiary’s (comprehensive) income or loss between its controlling and noncontrolling interest holders. Refer to Section 6.2.1 for further discussion of the HLBV method.