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ORGANIZATION AND CAPITAL MANAGEMENT
 6 Months Ended
Jun. 30, 2024
Management Commentary Explanatory [Abstract]  
ORGANIZATION AND CAPITAL MANAGEMENT ORGANIZATION AND CAPITAL MANAGEMENT
Brookfield Corporation (the “Corporation”) is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. 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 (“NYSE” and “TSX”, respectively) under the symbol BN. The Corporation was formed by articles of amalgamation under the Business Corporations Act (Ontario) and is registered in Ontario, Canada. 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 Wealth Solutions business, 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 June 30, 2024, the Corporation’s capital totaled $60.4 billion (December 31, 2023 – $58.2 billion), and is computed as follows:
AS AT JUN. 30, 2024 AND DEC. 31, 2023
(MILLIONS)
20242023
Cash and cash equivalents$112 $134 
Other financial assets4,408 4,004 
Common equity in investments55,649 53,523 
Other assets and liabilities of the Corporation219 506 
Corporation’s Capital$60,388 $58,167 
Corporation’s Capital is comprised of the following:
Common equity$41,232 $41,674 
Preferred equity4,103 4,103 
Non-controlling interest230 230 
Corporate borrowings14,823 12,160 
$60,388 $58,167 
The Corporation generates returns on its capital through management fees and performance revenues earned through its Asset Management business, distributable earnings from its Wealth Solutions 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 June 30, 2024 is as follows:
AS AT JUN. 30, 2024
(MILLIONS)
The CorporationInvestments
Elimination1
Total Consolidated
Cash and cash equivalents$112 $11,137 $— $11,249 
Other financial assets 4,408 26,206 — 30,614 
Accounts receivable and other1
1,404 28,538 (977)28,965 
Inventory— 11,841 — 11,841 
Assets classified as held for sale— 4,129 — 4,129 
Equity accounted investments2,407 59,878 — 62,285 
Investment properties18 127,217 — 127,235 
Property, plant and equipment131 145,997 — 146,128 
Intangible assets83 37,089 — 37,172 
Goodwill— 34,270 — 34,270 
Deferred income tax assets374 3,052 — 3,426 
Accounts payable and other1
(3,769)(54,463)977 (57,255)
Liabilities associated with assets classified as held for sale— (538)— (538)
Deferred income tax liabilities(427)(23,993)— (24,420)
Subsidiary equity obligations(2)(5,019)— (5,021)
Total4,739 405,341 — 410,080 
Common equity in investments2
55,649 —(55,649)— 
Corporation’s Capital60,388 405,341 (55,649)410,080 
Less:
Corporate borrowings14,823 — — 14,823 
Non-recourse borrowings of managed entities— 227,693 — 227,693 
Amounts attributable to preferred equity4,103 — — 4,103 
Amounts attributable to non-controlling interests230 121,999 — 122,229 
Common equity$41,232 $55,649 $(55,649)$41,232 
1.Contains the gross up of intercompany balances, including accounts receivable and other, and accounts payable and other of $977 million and $977 million, respectively, between entities within the Corporation and its investments.
2.Represents the carrying value of the Corporation’s investments.
Common equity in 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. This measure is equal to the sum of the common equity in our Asset Management, Wealth Solutions, 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, 2023 is as follows:
AS AT DEC. 31, 2023
(MILLIONS)
The CorporationInvestments
Elimination1
Total Consolidated
Cash and cash equivalents$134 $11,088 $— $11,222 
Other financial assets 4,00424,320— 28,324 
Accounts receivable and other1
1,19127,836(515)28,512 
Inventory—11,412— 11,412 
Assets classified as held for sale—2,489— 2,489 
Equity accounted investments2,08157,043— 59,124 
Investment properties21124,131— 124,152 
Property, plant and equipment144147,473— 147,617 
Intangible assets8438,910— 38,994 
Goodwill—34,911— 34,911 
Deferred income tax assets4892,849— 3,338 
Accounts payable and other1
(3,383)(56,025)515 (58,893)
Liabilities associated with assets classified as held for sale— (118)— (118)
Deferred income tax liabilities(117)(24,870)— (24,987)
Subsidiary equity obligations(4)(4,141)— (4,145)
Total4,644 397,308 — 401,952 
Common equity in investments2
53,523—(53,523)— 
Corporation’s Capital58,167 397,308 (53,523)401,952 
Less:
Corporate borrowings12,160 — — 12,160 
Non-recourse borrowings of managed entities—221,550— 221,550 
Amounts attributable to preferred equity4,103 — — 4,103 
Amounts attributable to non-controlling interests230 122,235 — 122,465 
Common equity$41,674 $53,523 $(53,523)$41,674 
1.Contains the gross up of intercompany balances, including accounts receivable and other, and accounts payable and other of $515 million and $515 million, respectively, between entities within the Corporation and its investments.
2.Represents the carrying value of the Corporation’s investments.