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

over from IAS 39 the requirements for de-recognition of financial assets and financial liabilities. InDecember 2011, the IASB issued “Mandatory Effective Date of IFRS 9 and Transition Disclosures”,which amended the effective date of IFRS 9 to annual periods beginning on or after January 1, 2015,and modified the relief from restating comparative periods and the associated disclosures in IFRS 7.Early adoption is permitted. The IASB intends to expand IFRS 9 to add new requirements forimpairment of financial assets measured at amortized cost and hedge accounting. On completion ofthese various phases, IFRS 9 will be a complete replacement of IAS 39.(b)(c)(d)(e)(f)Consolidated Financial StatementsIFRS 10, “Consolidated Financial Statements” (“IFRS 10”) establishes principles for the preparation ofan entity’s financial statements when it controls one or more other entities. The standard defines theprinciple of control and establishes control as the basis for determining which entities are consolidatedin the financial statements of the reporting entity. The standard also sets out the accountingrequirements for the preparation of consolidated financial statements.Joint ArrangementsIFRS 11, “Joint Arrangements” (“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 structuredthrough a separate vehicle, as well as the terms of the contractual arrangement and other relevant factsand circumstances, to assess whether the venture is entitled to only the net assets of the jointarrangement (a “joint venture”) or to its share of the assets and liabilities of the joint arrangement (a“joint operation”). Joint ventures are accounted for using the equity method, whereas joint operationsare accounted for using proportionate consolidation.Disclosure of Interests in Other EntitiesIFRS 12, “Disclosure of Interests in Other Entities” (“IFRS 12”) applies to entities that have an interestin a subsidiary, a joint arrangement, an associate or an unconsolidated structured entity. The standardrequires the reporting entity to disclose information that enables users of financial statements toevaluate: i.) the nature of, and risks associated with, the reporting entity’s interests in other entities; andii.) the effects of those interests on the reporting entity’s financial position, financial performance andcashflows.Fair Value MeasurementIFRS 13, “Fair Value Measurement” (“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 therequirements about the items that should be measured and disclosed at fair value.Income TaxesAmendments have been made to IAS 12, “Income Taxes” (“IAS 12”), that are applicable to themeasurement of deferred tax liabilities and deferred tax assets where investment property is measuredusing the fair value model in IAS 40, “Investment Property”. The amendments introduce a rebuttablepresumption that, for purposes of determining deferred tax consequences associated with temporarydifferences relating to investment properties, the carrying amount of an investment property isrecovered entirely through a sale. This presumption is rebutted if the investment property is held withina business model whose objective is to consume substantially all of the economic benefits embodied inthe investment property over time, rather than through a sale.Each of the above are effective for annual periods beginning on or after January 1, 2013, except for IFRS 9 andthe amendment to IAS 12 which are effective for annual periods beginning on or after January 1, 2015 andJanuary 1, 2012, respectively. Earlier application is permitted for each standard. The Business anticipatesadopting each of the above in the first quarter of the year for which the standard is applicable and is currentlyevaluating the impact of each to its financial statements.F-18