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

NOTE 8: JOINTLY CONTROLLED ASSETSThe Business has recorded its proportionate share of the related assets, liabilities, revenue and expenses ofproperties subject to joint control following the proportionate consolidation method. Summarized financialinformation in respect of the company’s interest in jointly controlled assets is set out below:(US$ Millions) Dec. 31, 2011 Dec. 31, 2010Non-current assets $ 2,605 $ 2,782Current assets 38 39Total assets 2,643 2,821Non-current liabilities 850 976Current liabilities 186 157Total liabilities 1,036 1,133Net assets $ 1,607 $ 1,688(US$ Millions) 2011 2010 2009Revenue $ 256 $ 250 $ 208Expenses 171 152 112Income before fair value gains (losses) 85 98 96Fair value gains (losses) 78 71 (253)Net income (loss) $ 163 $ 169 $ (157)NOTE 9: OTHER NON-CURRENT ASSETSThe components of other non-current assets are as follows:(US$ Millions) Dec. 31, 2011 Dec. 31, 2010Securities designated as FVTPL $ 856 $ 698Derivative assets 210 507Securities designated as AFS 194 259Goodwill 150 174Other non-current assets 1,122 316$ 2,532 $ 1,954Included in equity securities designated as FVTPL is a 22% common equity interest in Canary Wharf Group plc,a privately held commercial property investment and development company in the United Kingdom.Derivative assets include the carrying amount of warrants to purchase shares of common stock of GGP and TheHoward Hughes Corporation (“HHC”) with a carrying amount of $210 million (2010 - $197 million). The fairvalue of the warrants is determined using a Black-Scholes option pricing model, assuming a 6 year term, 37%volatility, and a risk free interest rate of 1.1%. Included in derivative assets in 2010 is $310 million in respect ofthe U.S. Office Fund Option. In the third quarter of 2011, the U.S. Office Fund Option, having a carrying amountof $241 million, was derecognized as a result of the exercise of the option by the company’s JV partner (refer toNote 6) with a corresponding adjustment to fair value gains (losses) in the carve-out statement of income (loss).Securities designated as AFS include $107 million (2010 - $106 million) representing the company’s commonand preferred equity interest in an office property in Washington, D.C. which is pledged as security for a loanpayable to the issuer of $92 million (2010 - $93 million) recognized in other non-current liabilities. Also includedin securities designated as AFS are commercial mortgage-backed securities (“CMBS”) with an estimated fairvalue of $46 million (2010 - $107 million) and common shares with a fair value of based on quoted market pricesof $41 million (2010 - $46 million).Goodwill represents a portfolio premium recognized in connection with the purchase of the company’s Brazilianretail assets.F-23