Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 443

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 19
Chunk 443
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 assistance of fair value specialists, evaluated the reasonableness of management’s discount rate by testing the source information underlying the determination of the discount rate, benchmarking the assumptions against publicly available information and developing a range of independent estimates based on market data and comparing those to the discount rate selected by management, as appropriate.

U. S. legislation for domestic energy production and manufacturing - Refer to Note 2(ae)(ii), 6 and 22 to the financial statements

Critical Audit Matter Description

The United States Department of the Treasury issued regulations that established incentives for qualifying business activities from 2023 to 2032, subject to phase out beginning in 2030. The Partnership’s advanced energy storage operation is entitled to claim tax benefits over the course of the availability period for qualified business activities. The benefits earned from qualified business activities from October 1, 2022 to September 30, 2023 are carried forward to offset future taxes and accounted for under IAS 12, Income Taxes (“ IAS 12”). During the year, the Partnership recorded $ 610 1,341

We identified these tax benefits as a critical audit matter because of the significant judgments made by management to identify qualifying business activities, quantify the benefit earned pursuant to the regulations and determine whether the refundable or transferable benefits met the recognition criteria in IAS 20. This required a high degree of auditor judgment and an increased extent of audit effort, including the involvement of technical accounting specialists, income tax specialists and tax incentive specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the tax benefits included the following, among others:

• Evaluated the effectiveness of internal controls over the tax benefits, including the completeness and accuracy of information used in the technical calculations.

  F-4      Brookfield Business Partners  

• With the assistance of technical accounting specialists, evaluated management’s significant accounting policies related to the tax benefits.

• With the assistance of income tax specialists, evaluated the specific factors that management considered to conclude that they are more likely than not to realize the tax benefits and reasonably assured to comply with the conditions of the regulations and receive the refundable credits.

• With the assistance of tax incentive specialists, assessed the methodology used by management to calculate the tax benefits, including an evaluation of whether the technical elements of the calculations are considered to be qualifying business activities under the regulations.

/s/ Deloitte LLP

Chartered Professional Accountants

Licensed Public Accountants

Toronto, Canada

April 9, 2025

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