Consolidated Financial Statements and Notes - Brookfield Asset ...

18. FUTURE INCOME TAXES AND OTHER PROVISIONSThe following table refl ects the company’s effective tax rate at December 31, 2005 and 2004:2005 2004Statutory income tax rate 37 % 37 %Increase (reduction) in rate resulting fromDividends subject to tax prior to receipt by the company (1) (1)Portion of gains not subject to tax (11) —Equity accounted earnings that have been tax effected by the investees (2) (14)Other (1) 1Effective income tax rate 22 % 23 %Future income taxes and other provisions include the following:YEARS ENDED DECEMBER 31 (MILLIONS) 2005 2004Future income taxes $ 285 $ 151Revaluation (gains) lossesInterest rate contracts 16 —Norbord exchangeable debentures 10 (6)Intangible assets 33 —Foreign exchange on capital securities — 113Tax effect of revaluation gains and losses (20) 2$ 324 $ 26019. EQUITY ACCOUNTED INCOMEEquity accounted income (loss) includes the following:MILLIONS 2005 2004Falconbridge $ 145 $ 205Norbord 87 135Fraser Papers (13) (8)Total $ 219 $ 33220. JOINT VENTURESThe following amounts represent the company’s proportionate interest in incorporated and unincorporated joint ventures refl ectedin the company’s accounts.MILLIONS 2005 2004Assets $ 2,947 $ 2,419Liabilities 1,857 1,456Operating revenues 573 501Operating expenses 279 233Net income 109 116Cash fl ows from operating activities 157 163Cash fl ows from investing activities (136) 23Cash fl ows from fi nancing activities (76) (5)86Brookfield Asset Management | 2005 Annual Report