Consolidated Financial Statements and Notes - Brookfield Asset ...

Consolidated Statement of IncomeYEARS ENDED DECEMBER 31MILLIONS, EXCEPT PER SHARE AMOUNTS Note 2005 2004(Note 1)Total revenues $ 5,256 $ 3,899Fees earned 282 199Revenues less direct operating costs 16Property 1,210 973Power generation 469 268Timberlands and infrastructure 64 26Specialty funds 54 481,797 1,315Investment and other income 227 188Disposition gains 49 1232,355 1,825ExpensesInterest 881 608Current income taxes 18 162 86Asset management 184 126Other operating costs 103 83Non-controlling interests in net income before the following 17 386 360639 562Other itemsEquity accounted income from investments 19 219 332Gains on disposition of Falconbridge 3 1,350 —Depreciation and amortization (374) (251)Future income taxes and other provisions 18 (324) (260)Non-controlling interests in the foregoing items 17 152 172Net income $ 1,662 $ 555Net income per common share 14Diluted $ 6.12 $ 2.02Basic $ 6.27 $ 2.06Consolidated Statement of Retained EarningsYEARS ENDED DECEMBER 31MILLIONS Note 2005 2004(Note 1)Retained earnings, beginning of year $ 1,944 $ 1,669Change in accounting policy 1 — (110)Net income 1,662 555Shareholder distributions – Preferred equity 23 (35) (24)– Common equity 23 (155) (136)Amount paid in excess of the book valueof common shares purchased for cancellation (95) (10)Retained earnings, end of year $ 3,321 $ 1,944Brookfield Asset Management | 2005 Annual Report 61