Brookfield Asset Management Inc. is a publicly traded Canadian company that converted to IFRS on January 1, 2010.
Instructions
From the company's website, access the annual report for the year ended December 31, 2009, the
last year of reporting under Canadian GAAP. Also obtain the annual report for the year ended
December 31, 2011. Review the notes to the statements and answer the following questions.
(a) What business is Brookfield in?
(b) What policies did the company use in 2009 to report commercial properties, power generation, timberlands, utilities, transportation assets, and development and other properties? Include in this discussion the depreciation and impairment testing policies. What is the amount of depreciation expense that is shown on the income statement?
(c) What policies did the company ultimately adopt for each of its capital asset categories (use the 2011 financial statements)? What method and assumptions has the company used to determine fair values for each class of assets?
(d) What other methods are available to determine fair value? Which methods are most reliable from a users perspective? Review IFRS 13 on fair value measurement to determine what level of fair value measurement the company has used to determine fair values.