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

The financial statements are prepared on a going concern basis and have been presented in U.S. dollars roundedto the nearest million unless otherwise indicated. The accounting policies set out below have been appliedconsistently in all material respects. Standards and interpretations effective for future accounting periods aredescribed in Note 4.b) Investment propertiesInvestment properties include operating properties held to earn rental income and properties that are beingconstructed or developed for future use as investment properties. Operating properties and developmentproperties are recorded at fair value, determined based on available market evidence, at the balance sheet date.Related fair value gains and losses are recorded in net income in the period in which they arise.The cost of development properties includes direct development costs, realty taxes and borrowing costs directlyattributable to the development. Borrowing costs associated with direct expenditures on properties underdevelopment or redevelopment are capitalized. Borrowing costs are also capitalized on the purchase cost of a siteor property acquired specifically for redevelopment in the short-term but only where activities necessary toprepare the asset for development or redevelopment are in progress. The amount of borrowing costs capitalized isdetermined first by reference to borrowings specific to the project, where relevant, and otherwise by applying aweighted average cost of borrowings to eligible expenditures after adjusting for borrowings associated with otherspecific developments. Where borrowings are associated with specific developments, the amount capitalized isthe gross cost incurred on those borrowings less any investment income arising on their temporary investment.Borrowing costs are capitalized from the commencement of the development until the date of practicalcompletion. The capitalization of borrowing costs is suspended if there are prolonged periods when developmentactivity is interrupted. The Business considers practical completion to have occurred when the property iscapable of operating in the manner intended by management. Generally this occurs upon completion ofconstruction and receipt of all necessary occupancy and other material permits. Where the Business haspre-leased space as of or prior to the start of the development and the lease requires the Business to constructtenant improvements which enhance the value of the property, practical completion is considered to occur oncompletion of such improvements.Initial direct leasing costs incurred by the Business in negotiating and arranging tenant leases are added to thecarrying amount of investment properties.c) Equity accounted investments(i) Investments in joint venturesA joint venture is a contractual arrangement pursuant to which the Business and other parties undertakean economic activity that is subject to joint control whereby the strategic financial and operating policydecisions relating to the activities of the joint venture require the unanimous consent of the partiessharing control.Joint venture arrangements that involve the establishment of a separate entity in which each venturehas an interest are referred to as jointly controlled entities. The Business reports its interests in jointlycontrolled entities using the equity method of accounting. Under the equity method, investments injointly controlled entities are carried in the carve-out balance sheet at cost as adjusted for thecompany’s proportionate share of post-acquisition changes in the net assets of the joint ventures, or forpost-acquisition changes in any excess of the company’s carrying amount over the net assets of thejoint ventures, less any identified impairment loss. When the company’s share of losses of a jointventure equals or exceeds its interest in that joint venture, the Business discontinues recognizing itsshare of further losses. An additional share of losses is provided for and a liability is recognized only tothe extent that the company has incurred legal or constructive obligations to fund the entity or madepayments on behalf of that entity.Where the Business undertakes its activities under joint venture arrangements through a direct interestin the joint venture’s assets, rather than through the establishment of a separate entity, the company’sF-10