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

available- for-sale. Estimation of the fair value of these instruments is also subject to the estimates andassumptions associated with investment properties.The fair value of interest rate caps is determined based on generally accepted pricing models using quotedmarket interest rates for the appropriate term. Interest rate swaps are valued at the present value of estimatedfuture cash flows and discounted based on applicable yield curves derived from market interest rates.Application of the effective interest method to certain financial instruments involves estimates andassumptions about the timing and amount of future principal and interest payments.Future Accounting Policy ChangesWe anticipate adopting each of the accounting policy changes below in the first quarter of the year forwhich the standard is applicable and are currently evaluating the impact of each.Financial InstrumentsIFRS 9, “Financial Instruments”, or IFRS 9, is a multi-phase project to replace IAS 39. IFRS 9 introducesnew requirements for classifying and measuring financial assets. In October 2010 the IASB reissued IFRS 9,incorporating new requirements on accounting for financial liabilities and carrying over from IAS 39 therequirements for de-recognition of financial assets and financial liabilities. In December 2011, the IASB issued“Mandatory Effective Date of IFRS 9 and Transition Disclosures”, which amended the effective date of IFRS 9to annual periods beginning on or after January 1, 2015, and modified the relief from restating comparativeperiods and the associated disclosures in IFRS 7. Early adoption is permitted. The IASB intends to expandIFRS 9 to add new requirements for impairment of financial assets measured at amortized cost and hedgeaccounting. On completion of these various phases, IFRS 9 will be a complete replacement of IAS 39.Consolidated Financial StatementsIFRS 10, “Consolidated Financial Statements”, or IFRS 10, establishes principles for the preparation ofan entity’s financial statements when it controls one or more other entities. The standard defines the principle ofcontrol and establishes control as the basis for determining which entities are consolidated in the financialstatements of the reporting entity. The standard also sets out the accounting requirements for the preparation ofconsolidated financial statements.Joint ArrangementsIFRS 11, “Joint Arrangements”, or IFRS 11, replaces the existing IAS 31, “Interests in Joint Ventures”(“IAS 31”). IFRS 11 requires that reporting entities consider whether a joint arrangement is structured through aseparate vehicle, as well as the terms of the contractual arrangement and other relevant facts and circumstances,to assess whether the venture is entitled to only the net assets of the joint arrangement (a “joint venture”) or to itsshare of the assets and liabilities of the joint arrangement (a “joint operation”). Joint ventures are accounted forusing the equity method, whereas joint operations are accounted for using proportionate consolidation.Disclosure Of Interests In Other EntitiesIFRS 12, “Disclosure of Interests in Other Entities”, or IFRS 12, applies to entities that have an interest ina subsidiary, a joint arrangement, an associate or an unconsolidated structured entity. The standard requiresdisclosure of information that enables users of financial statements to evaluate: (i) the nature of, and risksassociated with interests in other entities; and (ii) the effects of those interests on our financial position, financialperformance and cash flows.107