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

Fair Value MeasurementIFRS 13, “Fair Value Measurement”, or IFRS 13, replaces the current guidance on fair valuemeasurement in IFRS with a single standard. The standard defines fair value, provides guidance on itsdetermination and requires disclosures about fair value measurements but does not change the requirementsabout the items that should be measured and disclosed at fair value.Income TaxesAmendments to IAS 12, “Income Taxes”, or IAS 12 effective January 1, 2012 are applicable to themeasurement of deferred tax liabilities and deferred tax assets where investment property is measured using thefair value model in IAS 40, “Investment Property”. The amendments introduce a rebuttable presumption that, forpurposes of determining deferred tax consequences associated with temporary differences relating to investmentproperties, the carrying amount of an investment property is recovered entirely through sale. This presumption isrebutted if the investment property is held within a business model whose objective is to consume substantiallyall of the economic benefits embodied in the investment property over time, rather than through sale. The parentcompany has determined that based on its business model, the rebuttable presumption introduced by theamendments to IAS 12 has been overcome and has continued to measure deferred taxes on the basis that thecarrying amount of investment properties will be recovered through use except where there is a specific plan tosell a property in the foreseeable future. Therefore, the amendments to IAS 12 did not have an impact on themeasurement of the company’s deferred tax liabilities.Reconciliation of Performance Measures to IFRS MeasuresThe following table provides a reconciliation of net income attributable to Brookfield to Total Return andFFO for the three months ended March 31, 2012 and 2011:(US$ Millions) Three months ended Mar. 31, 2012 2011Net income attributable to parent company $ 383 $ 337Add (deduct):Income tax expense (benefit) 439 78Non-controlling interest in the above (242) (33)Total Return 580 382Add (deduct):Fair value (gains) losses (287) (303)Realized gains (78) 2Share of equity accounted fair value adjustments (1) (353) (57)Income tax expense (200) (7)Non-controlling interest in the above 479 119FFO $141 $ 136(1) Represents fair value gains (losses) related to equity accounted investments.The following table provides a reconciliation of net income attributable to Brookfield to Total Return andFFO for the years ended December 31, 2011, 2010 and 2009:(US$ Millions) Year ended December 31, 2011 2010 2009Net income attributable to parent company $ 2,323 $1,026 $(477)Add (deduct):Income tax expense (benefit) 439 78 (135)Non-controlling interest in the above (162) (19) 29Total Return 2,600 1,085 (583)Add (deduct):Fair value (gains) losses (1,112) (574) 887Realized gains (365) (250) (39)Share of equity accounted fair value adjustments (1) (1,612) (561) 710Non-controlling interest in the above 1,065 726 (584)FFO $ 576 $ 426 $ 391(1) Represents fair value gains (losses) related to equity accounted investments.108