XML 41 R8.htm IDEA: XBRL DOCUMENT v3.23.1
ORGANIZATION AND CAPITAL MANAGEMENT
 12 Months Ended
Dec. 31, 2022
Management Commentary Explanatory [Abstract]  
ORGANIZATION AND CAPITAL MANAGEMENT ORGANIZATION AND CAPITAL MANAGEMENT
Brookfield Corporation (the “Corporation”, formerly known as Brookfield Asset Management Inc.) is focused on deploying its capital on a value basis and compounding it over the long term. Employing a disciplined investment approach, we leverage our deep expertise as an owner and operator of real assets, as well as the scale and flexibility of our capital, to create value and deliver strong risk-adjusted returns across market cycles. References in these financial statements to “Brookfield,” “us,” “we,” “our” or “the company” refer to the Corporation and its direct and indirect subsidiaries and consolidated entities. The Corporation is listed on the New York and Toronto stock exchanges under the symbol BN. The Corporation was formed by articles of amalgamation under the Business Corporations Act (Ontario) and is registered in Ontario, Canada. On December 9, 2022, the Corporation filed the articles of arrangement and articles of amendment by arrangement to change its name from Brookfield Asset Management Inc. to Brookfield Corporation. The registered office of the Corporation is Brookfield Place, 181 Bay Street, Suite 100, Toronto, Ontario, M5J 2T3.
Capital Management
The company utilizes the Corporation’s Capital to manage the business in a number of ways, including operating performance, value creation, credit metrics and capital efficiency. The performance of the Corporation’s Capital is closely tracked and monitored by the company’s key management personnel and evaluated relative to management’s objectives. The primary goal of the company is to earn a 15%+ return compounded over the long term while always maintaining excess capital to support ongoing operations.
The Corporation’s Capital consists of the capital invested in its asset management business, including investments in entities that it manages, its corporate investments that are held outside of managed entities and its net working capital. The Corporation’s Capital is funded with common equity, preferred equity and corporate borrowings issued by the Corporation.
As at December 31, 2022, the Corporation’s Capital totaled $57.8 billion (December 31, 2021 – $57.5 billion), and is computed as follows:
AS AT DEC.31
(MILLIONS)		20222021
Cash and cash equivalents$1,564 $1,197 
Other financial assets6,959 3,430 
Common equity in managed investments44,413 46,248 
Other assets and liabilities of the Corporation4,895 6,585 
Corporation’s Capital$57,831 $57,460 
Corporation’s Capital is comprised of the following:
Common equity$39,608 $42,210 
Preferred equity4,145 4,145 
Non-controlling interest2,688 230 
Corporate borrowings11,390 10,875 
$57,831 $57,460 
The Corporation generates returns on its capital through management fees and performance revenues earned through its asset management business, distributions or dividends earned from its capital invested in managed entities, and through performance of the Corporation’s financial assets. Prudent levels of corporate borrowings and preferred equity are utilized to enhance returns to shareholders’ common equity.
A reconciliation of the Corporation’s Capital to the company’s consolidated balance sheet as at December 31, 2022 is as follows:
AS AT DEC. 31, 2022 (MILLIONS)The CorporationManaged Investments
Elimination1
Total Consolidated
Cash and cash equivalents$1,564 $12,832 $— $14,396 
Other financial assets 6,959 19,940 — 26,899 
Accounts receivable and other1
3,317 24,310 (249)27,378 
Inventory2 12,841 — 12,843 
Assets classified as held for sale— 2,830 — 2,830 
Equity accounted investments7,151 39,943 — 47,094 
Investment properties27 115,073 — 115,100 
Property, plant and equipment214 124,054 — 124,268 
Intangible assets206 38,205 — 38,411 
Goodwill354 28,308 — 28,662 
Deferred income tax assets1,769 1,634 — 3,403 
Accounts payable and other1
(7,123)(50,191)249 (57,065)
Liabilities associated with assets classified as held for sale— (876)— (876)
Deferred income tax liabilities(581)(22,609)— (23,190)
Subsidiary equity obligations(441)(3,747)— (4,188)
Total13,418 342,547 — 355,965 
Common equity in managed investments2
44,413—(44,413)— 
Corporation’s Capital57,831 342,547 (44,413)355,965 
Less:
Corporate borrowings11,390 — — 11,390 
Non-recourse borrowings of managed entities— 202,684 — 202,684 
Amounts attributable to preferred equity4,145 — — 4,145 
Amounts attributable to non-controlling interests2,688 95,450 — 98,138 
Common equity$39,608 $44,413 $(44,413)$39,608 
1.Contains the gross up of intercompany balances, including accounts receivable and other, and accounts payable and other of $249 million and $249 million, respectively, between entities within the Corporation and its managed investments.
2.Represents the value of the Corporation’s managed investments.
Common equity in managed investments is a measure routinely evaluated by our company’s key management personnel and represents the net equity in our consolidated financial statements outside of our Corporate Activities and Asset Management segments. This measure is equal to the sum of the common equity in our Renewable Power and Transition, Infrastructure, Private Equity, and Real Estate operating segments.
A reconciliation of the Corporation’s Capital to the company’s consolidated balance sheet as at December 31, 2021 is as follows:
AS AT DEC. 31, 2021
(MILLIONS)		The CorporationManaged Investments
Elimination1
Total Consolidated
Cash and cash equivalents$1,197 $11,497 $— $12,694 
Other financial assets 3,43013,116— 16,546 
Accounts receivable and other1
2,69719,694(631)21,760 
Inventory211,413— 11,415 
Assets classified as held for sale—11,958— 11,958 
Equity accounted investments6,55339,547— 46,100 
Investment properties16100,849— 100,865 
Property, plant and equipment215115,274— 115,489 
Intangible assets21530,394— 30,609 
Goodwill36119,866— 20,227 
Deferred income tax assets2,0641,276— 3,340 
Accounts payable and other1
(5,104)(48,073)631 (52,546)
Liabilities associated with assets classified as held for sale— (3,148)— (3,148)
Deferred income tax liabilities(299)(20,029)— (20,328)
Subsidiary equity obligations(135)(4,173)— (4,308)
Total11,212 299,461 — 310,673 
Common equity in managed investments2
46,248—(46,248)— 
Corporation’s Capital57,460 299,461 (46,248)310,673 
Less:
Corporate borrowings10,875 — — 10,875 
Non-recourse borrowings of managed entities—165,057— 165,057 
Amounts attributable to preferred equity4,145 — — 4,145 
Amounts attributable to non-controlling interests230 88,156 — 88,386 
Common equity$42,210 $46,248 $(46,248)$42,210 
1.Contains the gross up of intercompany balances, including accounts receivable and other, and accounts payable and other of $631 million and $631 million, respectively, between entities within the Corporation and its managed investments.
2.Represents the value of the Corporation’s managed investments.