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

Foreign currency riskThe Business is structured such that its foreign operations are primarily conducted by entities with a functionalcurrency which is the same as the economic environment in which the operations take place. As a result, the netincome impact of currency risk associated with financial instruments is limited as its financial assets andliabilities are generally denominated in the functional currency of the subsidiary that holds the financialinstrument. However, the Business is exposed to foreign currency risk on the net assets of its foreign currencydenominated operations. The company’s exposures to foreign currencies and the sensitivity of net income andother comprehensive income, on a pre-tax basis, to a 10% change in the exchange rates relative to the US dollaris summarized below:(Millions)December 31, 2011 December 31, 2010 December 31, 2009EquityEquityEquityattributableNet attributableNet attributableto parent OCI Income to parent OCI Income to parent OCINetIncomeCanadian Dollar C$ 935 $ (84) $ - C$ 820 $ (74) $ - C$ 1,032 $ (89) $ -Australian Dollar A$ 2,005 (186) - A$ 1,863 (173) - A$ 1,997 (163) -British Pound £ 641 (90) - £ 482 (69) - £ 255 (37) -Euro € 83 - (10) € 83 - (10) € 83 - (11)Brazilian Real R$ 586 (28) - R$ 265 (14) - R$ 223 (12) -Total $ (388) $ (10) $ (330) $ (10) $ (301) $ (11)Equity price riskThe Business faces equity price risk in connection with a total return swap under which it receives the returns ona notional 1,286,473 of BPO’s common shares. A $1 increase or decrease in BPO’s share price would result in a$1 million gain or loss being recognized in general and administrative expense.The Business also faces equity price risk related to its 22% common equity interest in Canary Wharf Group plc.A $1 increase in Canary Wharf Group plc’s share would result in a $141 million gain being recognized in fairvalue gains.(d) Credit riskThe company’s maximum exposure to credit risk associated with financial assets is equivalent to the carryingvalue of each class of financial assets as separately presented in loans and notes receivable, other non-currentassets, accounts receivables and other, and cash and cash equivalents.Credit risk arises on loans and notes receivables in the event that borrowers default on the repayment to theBusiness. The Business mitigates this risk by attempting to ensure that adequate security has been provided insupport of such loans and notes.Credit risk related to accounts receivable arises from the possibility that tenants may be unable to fulfill theirlease commitments. The Business mitigates this risk through diversification, ensuring that borrowers meetminimum credit quality requirements and by ensuring that its tenant mix is diversified and by limiting itsexposure to any one tenant. The Business maintains a portfolio that is diversified by property type so thatexposure to a business sector is lessened. Currently no one tenant represents more than 10% of operatingproperty revenue.The majority of the company’s trade receivables are collected within 30 days. The balance of accounts receivableand loans and notes receivable past due is not significant.F-37