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

Fair Value of Financial Instruments — The estimated fair value of mortgage debt and other loansdisclosed in the accompanying notes is based on the values derived using market interest rates of similarinstruments. In determining estimates of the fair value of financial instruments, the Company must makeassumptions regarding current market interest rates, considering the term of the instrument and its risk.Current market interest rates are generally selected from a range of potentially acceptable rates and,accordingly, other effective rates and/or fair values are possible.The carrying amounts of cash, escrows and restricted cash, receivables and other assets, accounts payableand other liabilities approximate their fair value due to the short maturities of these financial instruments.New Accounting Pronouncements — Changes to accounting principles generally accepted in the UnitedStates of America (“U.S. GAAP”) are established by the Financial Accounting Standards Board (“FASB”)in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification.In May 2011, the FASB issued ASU No. 2011-04, which updated the guidance in ASC Topic 820, FairValue Measurement. The amendments in this Update generally represent clarifications of Topic 820, butalso include some instances where a particular principle or requirement for measuring fair value ordisclosing information about fair value measurements has changed. This Update results in commonprinciples and requirements for measuring fair value and for disclosing information about fair valuemeasurements in accordance with U.S. GAAP and International Financial Reporting Standards. Theamendments in this Update are to be applied prospectively. The amendments are effective for the Companybeginning January 1, 2012. The adoption of this guidance is not expected to have a material impact on theconsolidated financial statements and notes.In June 2011, the FASB issued ASU No. 2011-05, which updated the guidance in ASC Topic 220,Comprehensive Income. Under the amendments in this Update, an entity has the option to present the totalof comprehensive income, the components of net income, and the components of other comprehensiveincome either in a single continuous statement of comprehensive income or in two separate but consecutivestatements. In both choices, an entity is required to present each component of net income along with totalnet income, each component of other comprehensive income along with a total for other comprehensiveincome, and a total amount for comprehensive income. This Update eliminates the option to present thecomponents of other comprehensive income as part of the statement of changes in stockholders’ equity. Theamendments required by this Update do not change the items that must be reported in other comprehensiveincome or when an item of other comprehensive income must be reclassified to net income. Theamendments required by this Update will be applied retrospectively. The amendments are effective for theCompany beginning January 1, 2012.In December, 2011, the FASB issued ASU No. 2011-12, which defers only those provisions withinASU 2011-05 pertaining to reclassification adjustments out of accumulated other comprehensive income.This guidance, except for those provisions deferred by ASU 2011-12, will become effective for fiscal yearsending December 15, 2012. The adoption of this guidance is not expected to have a material impact on theconsolidated financial statements and notes.F-83