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

Revenue is recognized on payments received from tenants for early lease terminations on a straight linebasis over the remaining term the tenant occupies the space.The Company provides an allowance for doubtful accounts on a specific identification basis representingthat portion of tenant, other and deferred rent receivables which are estimated to be uncollectible. Suchallowances are reviewed periodically based upon the recovery experience of the Company.The Company recognizes property sales in accordance with ASC Subtopic 360-20, Property, Plant andEquipment — Real Estate Sales. The Company generally records the sales of operating properties using thefull accrual method at closing when the earnings process is deemed to be complete. Sales not qualifying forfull recognition at the time of sale are accounted for under other appropriate deferral methods.Investments — Investments in ventures in which the Company does not have a controlling direct or indirectvoting interest, but over which it can exercise significant influence with respect to its operations and majordecisions, are accounted for using the equity method of accounting whereby the cost of an investment isadjusted for the Company’s share of equity in net income or loss from the date of acquisition and reduced bydistributions received and increased for contributions made. The income or loss of each entity is allocated inaccordance with the provision of the applicable operating agreements. The allocation provisions in theseagreements may differ from the ownership interest held by each investor. Differences between the carryingamount of the Company’s investment in the respective entities and the Company’s share of the underlyingequity of such unconsolidated entities are amortized over the respective lives of the underlying assets, asapplicable.Investments which do not provide the Company with the ability to exert significant influence are accountedfor using the cost method of accounting. Income is recognized only to the extent of dividends or cashreceived.The carrying value of investments which the Company determines to have an impairment considered to beother than temporary is written down to their fair value.Marketable equity securities are accounted for in accordance with ASC Subtopic 320-10-15, Debt andEquity Securities. Unrealized gains and losses on marketable equity securities that are designated asavailable-for-sale are included in accumulated other comprehensive income (loss).Income Taxes — The Company is a partnership for U.S. tax purposes and therefore is generally not subjectto federal and state income taxes.As a result, no provision has been made in the consolidated financial statements for federal income taxes forthe year, except as noted below in respect of TRZ Holdings’ taxable Corporate Subsidiaries.Taxable income from Corporate Subsidiaries is subject to federal, state and local income taxes. During theyear, the Corporate Subsidiaries recorded a tax recovery of $207 ($48 recovery in 2010, $1,017 expense in2009). The Corporate Subsidiaries deferred income taxes, where applicable, are accounted for using theasset and liability method. Under this method, deferred income taxes are recognized for temporarydifferences between the financial reporting bases of assets and liabilities and their respective tax bases andfor operating loss and tax credit carryforwards based on enacted tax rates expected to be in effect when suchamounts are realized or settled. However, deferred tax assets are recognized only to the extent that it is morelikely than not that they will be realized based on consideration of available evidence, including taxplanning strategies and other factors. In addition, for the years ended December 31, 2011 and 2010, theseCorporate Subsidiaries had net operating loss carryforward balances of $7,663 and $6,175, respectively.A portion of the Corporate Subsidiaries’ net operating loss carryforwards may be subject to limitation underthe Internal Revenue Code Section 382. A valuation allowance fully offsets the net operating losscarryforward and, as a result, no deferred tax assets have been established.F-81