Access the 2017 consolidated financial statements of Brookfield Asset Management Inc. (BAM) at https://bam.brookfield.com/en/reports-and-filings and answer the questions below for 2017. When applicable, indicate the financial statement or the number of the note to the financial statements where you found the answer.

Required

1.How does BAM define an associate?

2. What is BAM’s accounting policy for associates?

3. What was BAM’s largest associate in terms of carrying value and what was its percentage ownership in the associate?

4. What portion of BAM's net income came from investments accounted for using the equity method?

5. What amount of dividends did BAM receive from associates and joint ventures?  

6. BAM discloses the fair value of its largest investment in an associate. What was the fair value of this investment in the associate? Discuss the relevance of disclosing both the carrying amount and fair value of this investment in an associate.

8. What reason might BAM have for concluding that the investment was not impaired even though the fair value was less than its carrying value?

9. If the investments accounted for using the equity method had been reported at cost, what would BAM’s net income have been? Ignore income taxes.

10. Explain whether BAM’s profitability looks better or worse when switching to the cost method for investments in associates and joint ventures.

11. What is the expected impact on the company's net income when they move from IAS 39 to IFRS 9 to account for financial instruments?