FORM 20-F/A Brookfield Property Partners L.P. - Brookfield Asset ...

TRZ Holdings; in the event the JV Partner did not first exercise its option, we had an option, commencing in2013 for a period of 14 months, to put the JV Partner sub-managed properties to the JV Partner in redemption ofits interest in TRZ Holdings, all of which we refer to as the U.S. Office Fund Option.On August 9, 2011, the JV Partner exercised its option, redeeming its equity interest in TRZ Holdings inexchange for its sub-managed properties, and repaid the debt associated with those properties. Prior to theexercise of the U.S. Office Fund Option, we and the JV Partner had joint control over the strategic financial andoperating policy decisions of TRZ Holdings and it was accounted for as a jointly controlled entity following theequity method of accounting. Following the exercise of the U.S. Office Fund Option, we held an 82.72% equityinterest in TRZ Holdings and obtained control over the strategic financial and operating policy decisions of theentity. Accordingly, we have consolidated our interest in TRZ Holdings effective August 9, 2011 and recognizedthe assets, liabilities and non-controlling interests in TRZ Holdings at fair value as at that date in accordance withIFRS 3, “Business Combinations”.Canary Wharf Group plcWe have determined that, notwithstanding our 22% common equity interest, we do not exercisesignificant influence over Canary Wharf as we are not able to elect board members or otherwise influence thefinancial and operating decisions.General Growth Properties, Inc.We acquired an indirect interest in GGP together with a consortium of institutional investors through aseries of parallel investment vehicles. As of March 31, 2012, we held an indirect 21% interest in GGP and wereentitled to appoint three of the nine directors to GGP’s board. Brookfield and the consortium members haveentered into a voting agreement governing the combined investment in GGP wherein the members have jointcontrol over such investment and the consortium as a whole exercises significant influence over GGP.Accordingly, we accounted for the investment following the equity method of accounting.TaxationWe apply judgment in determining the tax rate applicable to our REIT operating entities and identifyingthe temporary differences related to such operating entities with respect to which deferred income taxes arerecognized. Deferred taxes related to temporary differences arising in the company’s REIT operating entities,joint ventures and associates are measured based on the tax rates applicable to distributions received by theinvestor entity on the basis that REITs can deduct dividends or distributions paid such that their liability forincome taxes is substantially reduced or eliminated for the year, and we intend that these entities will continue todistribute their taxable income and continue to qualify as REITs for the foreseeable future.We measure deferred income taxes associated with our investment properties based on our specificintention with respect to each asset at the end of the reporting period. Where we have a specific intention to sell aproperty in the foreseeable future, deferred taxes on the building portion of the investment property are measuredbased on the tax consequences following from the disposition of the property. Otherwise, deferred taxes aremeasured on the basis the carrying value of the investment property will be recovered substantially through use.Judgment is required in determining the manner in which the carrying amount of each investment property willbe recovered.We also make judgments with respect to the taxation of gains inherent in our investments in foreignsubsidiaries and joint ventures. While we believe that the recovery of our original investment in these foreignsubsidiaries and joint ventures will not result in additional taxes, certain unremitted gains inherent in thoseentities could be subject to foreign taxes depending on the manner of realization.105