Company: BIP-PB
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014380
Chunk: 493

Company: Brookfield Infrastructure Partners L.P.
Filing Date: 2025-03-24
Form: 20-F
Item: Item 19
Chunk 493
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 matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

F-2 Brookfield Infrastructure

Fair Value of Investment Properties and Revaluation of Property, Plant and Equipment - Refer to Notes 3, 14 and 17 to the financial statements

Critical Audit Matter Description

The Partnership has elected the revaluation method for all classes of property, plant and equipment and the fair value model to account for assets classified as investment property. Subsequent to initial recognition, the Partnership measures investment properties and certain classes of property, plant and equipment at fair value on the statement of financial position using a discounted cash flow approach.

While there are several assumptions that are required to determine the fair value of property, plant and equipment and investment properties, the significant inputs with the highest degree of subjectivity and impact on fair value are the future revenues, terminal value multiples and discount rates for those classes of property, plant and equipment where such inputs significantly impact the revaluation. Given the revaluation of property, plant and equipment and fair valuation of investment properties requires management to make significant assumptions relating to the significant inputs of future revenues, terminal value multiples and discount rates, auditing these assumptions required a high degree of auditor judgment as the estimations made by management contain significant measurement uncertainty. This resulted in an increased extent of audit effort, including the need to involve fair value specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the future revenues, terminal value multiples and discount rates for certain classes of property, plant and equipment and investment properties included the following, among others:

• Evaluated the effectiveness of controls over fair valuation and revaluation, including those over the unobservable estimates of future revenues, terminal value multiples and discount rates.

• Evaluated management’s ability to accurately estimate future revenues by comparing actual results to management’s historical forecasts.

• Assessed the reasonableness of management’s estimated future revenues by considering historical results and observable independent macroeconomic data, where applicable.

• With the assistance of fair value specialists, we evaluated the reasonableness of the terminal value