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

liabilities are provided for using the liability method on temporary differences between the tax bases and carryingamounts of assets and liabilities. Deferred income tax assets are recognized for all deductible temporarydifferences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable thatdeductions, tax credits and tax losses can be utilized. The carrying amount of deferred income tax assets isreviewed at each balance sheet date and reduced to the extent it is no longer probable that the income tax assetwill be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected toapply to the year when the asset is realized or the liability settled, based on the tax rates and laws that have beenenacted or substantively enacted at the balance sheet date. Current and deferred income tax relating to itemsrecognized directly in equity are also recognized directly in equity.g) ProvisionsA provision is a liability of uncertain timing or amount. Provisions are recognized when the Business has apresent legal or constructive obligation as a result of past events, it is probable that an outflow of resources willbe required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized forfuture operating losses. Provisions are measured at the present value of the expenditures expected to be requiredto settle the obligation using a discount rate that reflects current market assessments of the time value of moneyand the risks specific to the obligation. Provisions are re-measured at each balance sheet date using the currentdiscount rate. The increase in the provision due to passage of time is recognized as interest expense.h) Foreign currenciesThe financial statements are presented in U.S. dollars, which is the functional currency of the parent companyand the presentation currency for the financial statements.Assets and liabilities of subsidiaries or equity accounted investees having a functional currency other than theU.S. dollar are translated at the rate of exchange at the balance sheet date. Revenues and expenses are translatedat average rates for the period. The resulting foreign currency translation adjustments are recognized in othercomprehensive income (“OCI”).Foreign currency transactions are translated into the functional currency using exchange rates prevailing at thedate of the transactions. At the end of each reporting period, foreign currency denominated monetary assets andliabilities are translated to the functional currency using the prevailing rate of exchange at the balance sheet date.Gains and losses on translation of monetary items are recognized in the income statement in interest and other,except for those related to monetary liabilities qualifying as hedges of the company’s investment in foreignoperations or certain intercompany loans to or from a foreign operation for which settlement is neither plannednor likely to occur in the foreseeable future, which are included in other comprehensive income.i) Revenue recognition(i) Investment propertiesThe Business has retained substantially all of the risks and benefits of ownership of its investmentproperties and therefore accounts for leases with its tenants as operating leases. Revenue recognitionunder a lease commences when the tenant has a right to use the leased asset. Generally, this occurs onthe lease inception date or, where the Business is required to make additions to the property in the formof tenant improvements which enhance the value of the property, upon substantial completion of thoseimprovements. The total amount of contractual rent to be received from operating leases is recognizedon a straight-line basis over the term of the lease; a straight-line rent receivable, which is included inthe carrying amount of investment property, is recorded for the difference between the rental revenuerecorded and the contractual amount received.Rental revenue also includes percentage participating rents and recoveries of operating expenses,including property and capital taxes. Percentage participating rents are recognized when tenants’specified sales targets have been met. Operating expense recoveries are recognized in the period thatrecoverable costs are chargeable to tenants.F-12