HLBV Consulting

The HBLV (Hypothetical Liquidation at Book Value) is an income or loss allocation method for US GAAP purposes. HLBV is frequently used in Variable Interest Entities ("VIEs") where cash and tax benefit sharing ratios between partners change over the life of a project. The method determines how better or worse off the partners are at the end of the period than they were at the beginning of the period in a tax equity structure assuming hypothetical liquidation of a project at book value.