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

The following table outlines financial assets and liabilities measured at fair value in the carve-out financialstatements and the level of the inputs used to determine those fair values in the context of the hierarchy asdefined above:December 31, 2011 December 31, 2010(US$ Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 TotalFinancial AssetsOther non-current assetsSecurities designated as FVTPL $ - $ - $ 856 $ 856 $ - $ - $ 698 $ 698Loans receivable designated as FVTPL - - 138 138 - - - -Securities designated as AFS 41 - 153 194 46 - 213 259Derivative assets - - 210 210 - - 507 507$ 41 $ - $ 1,357 $ 1,398 $ 46 $ - $ 1,418 $ 1,464Financial LiabilitiesProperty debt $ - $ - $ 56 $ 56 $ - $ - $ 54 $ 54Other non-current liabilities - 83 - 83 - 9 133 142Accounts payable and other liabilities - 228 - 228 - - - -$ - $ 311 $ 56 $ 367 $ - $ 9 $ 187 $ 196(c) Market riskInterest Rate riskThe Business faces interest rate risk on its variable rate financial assets and liabilities. In addition, there isinterest rate risk associated with the company’s fixed rate debt due to the expected requirement to refinance suchdebt in the year of maturity. The following table outlines the impact on interest expense from continuingoperations of a 100 basis point increase or decrease in interest rates on the company’s variable rate assets andliabilities and fixed rate debt maturing within one year:(US$ Millions) Dec. 31, 2011 Dec. 31, 2010Parent company bridge loan $ - $ 4BPO Corporate revolving facilities 4 -Variable rate property debt 71 47Fixed rate property debt due within one year 3 3Total $ 78 $ 54The Business manages interest rate risk by primarily entering into fixed rate operating property debt andstaggering the maturities of its mortgage portfolio over a 10-year horizon when the market permits. The companyalso makes use of interest rate derivatives to manage interest rate risk on specific variable rate debts and onanticipated refinancing of fixed rate debt.F-36