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FAIR VALUE OF FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2022
Disclosure of detailed information about financial instruments [abstract]  
Fair value changes RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
a)    Risk Management
The company’s activities expose it to a variety of financial risks, including market risk (i.e., commodity price risk, interest rate risk, and foreign currency risk), credit risk and liquidity risk. We use financial instruments primarily to manage these risks.
There have been no material changes to the company’s financial risk exposure or risk management activities since December 31, 2021. Please refer to Note 26 of the December 31, 2021 audited consolidated financial statements for a detailed description of the company’s financial risk exposure and risk management activities.
b)    Financial Instruments
The following tables list the company’s financial instruments by their carrying value and fair value as at June 30, 2022 and December 31, 2021:

20222021
AS AT JUN. 30, 2022 AND DEC. 31, 2021 (MILLIONS)Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Financial assets
Cash and cash equivalents$12,205 $12,205 $12,694 $12,694 
Other financial assets
Government bonds1,655 1,655 2,020 2,020 
Corporate bonds2,134 2,134 2,521 2,521 
Fixed income securities and other5,877 5,877 3,241 3,241 
Common shares and warrants5,901 5,901 5,927 5,927 
Loans and notes receivable7,535 7,535 2,837 2,837 
23,102 23,102 16,546 16,546 
Accounts receivable and other19,240 19,240 15,318 15,318 
$54,547 $54,547 $44,558 $44,558 
Financial liabilities
Corporate borrowings$12,054 $11,652 $10,875 $11,993 
Non-recourse borrowings of managed entities
Property-specific borrowings172,666 171,382 152,008 153,844 
Subsidiary borrowings14,919 14,124 13,049 13,415 
187,585 185,506 165,057 167,259 
Accounts payable and other42,846 42,846 43,504 43,504 
Subsidiary equity obligations4,788 4,788 4,308 4,308 
$247,273 $244,792 $223,744 $227,064 
c)    Fair Value Hierarchy Levels
The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the fair value hierarchy levels:
 20222021
AS AT JUN. 30, 2022 AND DEC. 31, 2021 (MILLIONS)
Level 1
Level 2
Level 3
Level 1Level 2Level 3
Financial assets
Other financial assets
Government bonds$16 $1,639 $— $48 $1,972 $— 
Corporate bonds129 1,653 348 85 2,050 383 
Fixed income securities and other570 2,267 437 762 1,908 451 
Common shares and warrants1,777 2,490 1,634 4,063 548 1,316 
Loans and notes receivables6 — 5 — — 5 
2,498 8,049 2,424 4,958 6,478 2,155 
Accounts receivable and other31 2,703 28 3 2,265 77 
$2,529 $10,752 $2,452 $4,961 $8,743 $2,232 
Financial liabilities
Accounts payable and other$63 $3,367 $1,322 $29 $4,150 $1,311 
Subsidiary equity obligations— 447 1,244 — 135 1,403 
$63 $3,814 $2,566 $29 $4,285 $2,714 
During the three and six months ended June 30, 2022, there were no transfers between Level 1, 2 or 3.
Fair values of financial instruments are determined by reference to quoted bid or ask prices, as appropriate. If bid and ask prices are unavailable, the closing price of the most recent transaction of that instrument is used. In the absence of an active market, fair values are determined based on prevailing market rates for instruments with similar characteristics and risk profiles or internal or external valuation models, such as option pricing models and discounted cash flow analysis, using observable market inputs.
The following table summarizes the valuation techniques and key inputs used in the fair value measurement of Level 2 financial instruments:
(MILLIONS)
Type of Asset/Liability
Carrying Value Jun. 30, 2022Valuation Techniques and Key Inputs
Other financial assets$8,049 Valuation models based on observable market data
Derivative assets/Derivative liabilities (accounts receivable/accounts payable)
             2,703 /
(3,367)
Foreign currency forward contracts – discounted cash flow model – forward exchange rates (from observable forward exchange rates at the end of the reporting period) and discounted at credit adjusted rate
 
Interest rate contracts – discounted cash flow model – forward interest rates (from observable yield curves) and applicable credit spreads discounted at a credit adjusted rate
 
Energy derivatives – quoted market prices, or in their absence internal valuation models, corroborated with observable market data
Redeemable fund units (subsidiary equity obligations)(447)Aggregated market prices of underlying investments
Fair values determined using valuation models requiring the use of unobservable inputs (Level 3 financial assets and liabilities) include assumptions concerning the amount and timing of estimated future cash flows and discount rates. In determining those unobservable inputs, the company uses observable external market inputs such as interest rate yield curves, currency rates and price and rate volatilities, as applicable, to develop assumptions regarding those unobservable inputs.
The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of Level 3 financial instruments:
(MILLIONS)
Type of Asset/Liability
Carrying Value Jun. 30, 2022Valuation
Techniques		Significant
Unobservable Inputs		Relationship of Unobservable
Inputs to Fair Value
Corporate bonds$348 Discounted cash flows•  Future cash flows•  Increases (decreases) in future cash flows increase (decrease) fair value
•  Discount rate•  Increases (decreases) in discount rate decrease (increase) fair value
Fixed income securities and other437 Discounted cash flows•  Future cash flows
•  Increases (decreases) in future cash flows increase (decrease) fair value
•  Discount rate
•  Increases (decreases) in discount rate decrease (increase) fair value
Common shares and warrants1,634 Discounted cash flows•  Future cash flows
•  Increases (decreases) in future cash flows increase (decrease) fair value
•  Discount rate
•  Increases (decreases) in discount rate decrease (increase) fair value
Black-Scholes model•  Volatility






•  Increases (decreases) in volatility increase (decreases) fair value
•  Term to maturity
•  Increases (decreases) in term to maturity increase (decrease) fair value
Derivative assets/Derivative liabilities (accounts receivable/payable)
28 /
(1,322)
  Discounted cash flows  •  Future cash flows
  •  Increases (decreases) in future cash flows increase (decrease) fair value
•  Discount rate•  Increases (decreases) in discount rate decrease (increase) fair value
Limited-life funds (subsidiary equity obligations)(1,244)Discounted cash flows•  Future cash flows•  Increases (decreases) in future cash flows increase (decrease) fair value
•  Discount rate•  Increases (decreases) in discount rate decrease (increase) fair value
•  Terminal capitalization rate•  Increases (decreases) in terminal capitalization rate decrease (increase) fair value
•  Investment horizon•  Increases (decreases) in the investment horizon decrease (increase) fair value
The following table presents the changes in the balance of financial assets and liabilities classified as Level 3 for the periods months ended June 30, 2022:
 Three Months EndedSix Months Ended
AS AT AND FOR THE PERIODS ENDED JUN. 30, 2022 (MILLIONS) Financial
Assets		Financial
Liabilities		Financial
Assets		Financial
Liabilities
Balance, beginning of period$2,410 $2,738 $2,232 $2,714 
Fair value changes in net income54 50 158 99 
Fair value changes in other comprehensive income1
9 (44)(3)33 
Additions, net of disposals(21)(178)65 (280)
Balance, end of period$2,452 $2,566 $2,452 $2,566 
1.Includes foreign currency translation.
FAIR VALUE CHANGES
Fair value changes recorded in net income represent gains or losses arising from changes in the fair value of assets and liabilities, including derivative financial instruments, accounted for using the fair value method and are comprised of the following:
Three Months EndedSix Months Ended
FOR THE PERIODS ENDED JUN. 30 (MILLIONS) 2022202120222021
Investment properties$567 $880 $2,413 $1,707 
Transaction related (losses) gains, net of expenses(156)(282)(229)999 
Financial contracts(46)138 (30)653 
Impairment and provisions38 (149)21 (384)
Other fair value changes(800)(210)(792)(504)
$(397)$377 $1,383 $2,471