Company: BPYPN
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001545772-25-000008
Chunk: 247

Company: Brookfield Property Partners L.P.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 19
Chunk 247
---
 when the hedging instrument expires or is sold, terminated or exercised. The discontinuation is accounted for prospectively. Any gain or loss recognized in other comprehensive income and accumulated in the cash flow hedge reserve at that time remains in equity and is reclassified to profit or loss when the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in cash flow hedge reserve is reclassified immediately to net income.

In a net investment hedging relationship, the effective portion of the fair value of the hedging instruments is recognized in other comprehensive income and the ineffective portion is recognized in net income. The amounts recorded in accumulated other comprehensive income are reclassified to net income, together with the related cumulative translation gain or loss, when there is a disposition or partial disposition that results in the loss of control of foreign operations or the derivatives are not part of any other hedge relationships.

In assessing whether a hedge relationship impacted by Interest Rate Benchmark Reform (“ IBOR Reform”) is expected to be highly effective on a forward-looking basis, the partnership assumes the interest rate benchmark on which the cash flows of the derivative which hedges borrowings is not altered by IBOR Reform. These reliefs cease to apply to a hedged item or hedging instrument as applicable at the earlier of (i) when the uncertainty arising from IBOR Reform is no longer present with respect to the timing and amount of the interest rate benchmark based future cash flows, and (ii) when the hedging relationship is discontinued. The partnership accounts for the modification of financial instruments where the basis for determining the contractual cash flows changes as a result of IBOR Reform, through prospective application of the applicable benchmark interest rate, and application of hedge accounting, providing an exception such that changes in the formal designation and documentation of hedge accounting relationships that are needed to reflect the changes required by IBOR reform do not result in the discontinuation of hedge accounting or the designation of new hedging relationships.

Canadian Overnight Repo Rate Average (“ CORRA”) replaced Canadian Dollar Offered Rate (“ CDOR”) effective June 30, 2024. The partnership has addressed the impact and effected changes required as a result of amendments to the contractual terms of CORRA referenced floating-rate borrowings, interest rate swaps, interest rate caps, and updated hedge designations. The adoption did not have a significant impact on the partnership’s financial reporting.

Note 30,
Financial Instruments provides details of the hedging instruments and hedged exposures to which the IBOR Reform are applied as at December 31, 2024.