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

Notes to the Condensed Carve-out Financial StatementsNOTE 1: NATURE AND DESCRIPTION OF THE OPERATIONSThe Commercial Property Operations of Brookfield Asset Management Inc. (“Brookfield” or the “parentcompany”) consist of substantially all of Brookfield’s commercial property operations, including office, retail,multi-family and industrial and opportunistic investments, located in the United States, Canada, Australia, Braziland Europe that have historically been owned and operated, both directly and through its operating entities, byBrookfield (collectively, the “Business” or the “company”). These operations include interests in 124 officeproperties and 182 retail properties. In addition, Brookfield has interests in a multi-family and industrial platformand an 18 million square foot commercial office development pipeline.Brookfield will effect a reorganization so that an interest in the Business is acquired by holding entities, whichwill be owned by a subsidiary of Brookfield Property Partners L.P. (the “partnership”), a newly formed limitedpartnership. Brookfield intends to transfer the Business through a special dividend to holders of its Class Alimited voting shares and Class B limited voting shares of a portion of the partnership’s non-voting limitedpartnership units (the “spin-off’). The partnership’s sole direct investment will be a limited partner interest inBrookfield Property L.P. (the “property partnership”) which will control the Business through holding entities. Itis currently anticipated that immediately following the spin-off, the holders of Class A limited voting shares andClass B limited voting shares will own approximately 10% of the issued and outstanding units of the company ona fully-exchanged basis and Brookfield will hold units of the company and units of the property partnership that,taken together on a fully-exchanged basis represent approximately 90% of the units of the Company. Thepartnership will control the strategic, financial and operating policy decisions of the property partnershippursuant to a voting agreement to be entered into between the partnership and Brookfield. Wholly-ownedsubsidiaries of Brookfield will serve as the general partners for both the partnership and the property partnership.The parent company’s registered head office is Brookfield Place, 181 Bay Street, Suite 300, Toronto, Ontario,M5J 2T3.NOTE 2: SIGNIFICANT ACCOUNTING POLICIESa) Basis of presentationThese interim condensed carve-out financial statements represent a carve-out of the assets, liabilities, revenues,expenses, and cashflows of the Business that will be contributed to the partnership. These interim condensedcarve-out financial statements have been prepared in accordance with International Accounting Standard (“IAS”)34, “Interim Financial Reporting” (“IAS 34”), as issued by the International Accounting Standards Board(“IASB”). Accordingly, certain information and footnote disclosure normally included in annual financialstatements prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by theIASB, have been omitted or condensed.The interim condensed carve-out financial statements have been prepared using the same accounting policies andmethods as those used in the carve-out financial statements for the year ended December 31, 2011, except for theimpact of the adoption of the accounting standard described below. The interim condensed carve-out financialstatements have been presented in U.S. dollars rounded to the nearest million unless otherwise indicated.Due to the inherent limitations of carving out the assets, liabilities, operations and cashflows from larger entities,these financial statements may not necessarily reflect the company’s financial position, results of operations andcashflow for future periods, nor do they reflect the financial position, results of operations and cashflow thatwould have been realized had the Business been a stand-alone entity during the periods presented.These interim condensed carve-out financial statements should be read in conjunction with the carve-outfinancial statements of the Business for the year ended December 31, 2011.F-49