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RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2023
Disclosure of detailed information about financial instruments [abstract]  
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS 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, 2022. Please refer to Note 26 of the December 31, 2022 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, 2023 and December 31, 2022:
20232022
AS AT JUN. 30, 2023 AND DEC. 31, 2022 (MILLIONS)Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Financial assets
Cash and cash equivalents$12,427 $12,427 $14,396 $14,396 
Other financial assets
Government bonds1,621 1,621 1,566 1,566 
Corporate bonds2,695 2,695 2,147 2,147 
Fixed income securities and other9,287 9,287 8,762 8,762 
Common shares and warrants7,441 7,441 6,472 6,472 
Loans and notes receivable8,422 8,422 7,952 7,952 
29,466 29,466 26,899 26,899 
Accounts receivable and other20,706 20,706 19,880 19,880 
$62,599 $62,599 $61,175 $61,175 
Financial liabilities
Corporate borrowings$13,618 $11,920 $11,390 $9,599 
Non-recourse borrowings of managed entities
Property-specific borrowings189,798 187,709 187,544 184,254 
Subsidiary borrowings16,287 15,922 15,140 14,708 
206,085 203,631 202,684 198,962 
Accounts payable and other49,360 49,360 48,559 48,559 
Subsidiary equity obligations4,049 4,049 4,188 4,188 
$273,112 $268,960 $266,821 $261,308 
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:
 20232022
AS AT JUN. 30, 2023 AND DEC. 31, 2022 (MILLIONS)
Level 1
Level 2
Level 3
Level 1Level 2Level 3
Financial assets
Other financial assets
Government bonds$49 $1,572 $— $91 $1,475 $— 
Corporate bonds61 1,889 740 65 1,754 324 
Fixed income securities and other408 2,067 4,046 493 2,099 3,376 
Common shares and warrants3,971 769 2,701 3,975 377 2,120 
Loans and notes receivables— 63 8 22 26 5 
4,489 6,360 7,495 4,646 5,731 5,825 
Accounts receivable and other3 3,553 19 12 3,731 6 
$4,492 $9,913 $7,514 $4,658 $9,462 $5,831 
Financial liabilities
Accounts payable and other$4 $4,558 $2,170 $7 $4,469 $2,419 
Subsidiary equity obligations— 442 512 — 441 673 
$4 $5,000 $2,682 $7 $4,910 $3,092 
During the three and six months ended June 30, 2023, 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, 2023Valuation Techniques and Key Inputs
Other financial assets$6,360 Valuation models based on observable market data
Derivative assets/Derivative liabilities (accounts receivable/accounts payable)
             3,553 /
(4,558)
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)(442)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, 2023Valuation
Techniques		Significant
Unobservable Inputs		Relationship of Unobservable
Inputs to Fair Value
Corporate bonds$740 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 other4,046 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 warrants2,701 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)
19 /
(2,170)
  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)(512)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 ended June 30, 2023:
 Three Months EndedSix Months Ended
AS AT AND FOR THE PERIODS ENDED JUN. 30, 2023 (MILLIONS) Financial
Assets		Financial
Liabilities		Financial
Assets		Financial
Liabilities
Balance, beginning of period$6,637 $2,880 $5,831 $3,092 
Fair value changes in net income146 (162)222 (385)
Fair value changes in other comprehensive income1
(3)(1)(1)(9)
Additions, net of disposals734 (35)1,462 (16)
Balance, end of period$7,514 $2,682 $7,514 $2,682 
1.Includes foreign currency translation.