Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 464

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 19
Chunk 464
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  Financial assets                                                                                                                                         
  Cash and cash equivalents       Amortized cost                      Cash and cash equivalents                                                            
  Accounts receivable             Amortized cost                      Accounts and other receivable, net                                                   
  Restricted cash                 Amortized cost                      Financial assets                                                                     
  Equity securities               FVTPL / FVOCI                       Financial assets                                                                     
  Debt securities                 Amortized cost / FVTPL / FVOCI      Financial assets                                                                     
  Derivative assets               FVTPL (1)                           Financial assets                                                                     
  Other financial assets          Amortized cost / FVTPL / FVOCI      Financial assets                                                                     
  Financial liabilities                                                                                                                                    
  Borrowings                      Amortized cost                      Non-recourse borrowings in subsidiaries of the partnership and Corporate borrowings  
  Accounts payable and other      Amortized cost                      Accounts payable and other                                                           
  Derivative liabilities          FVTPL (1)                           Accounts payable and other                                                           

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(1) Derivative assets and liabilities are classified and measured at FVTPL except those designated in hedging relationships.

The classification of financial instruments depends on the specific business model for managing the financial instruments and the contractual cash flow characteristics of the financial asset. The partnership maintains a portfolio of marketable securities comprising equity and debt securities. Marketable securities are recognized at fair value on their trade date. They are subsequently measured at fair value at each reporting date with the change in fair value recorded in either profit or loss (“ FVTPL”) or other comprehensive income (“ FVOCI”). For investments in debt instruments, subsequent measurement will depend on the business model for which the investments are held and the cash flow characteristics of the debt instruments.

At initial recognition, the partnership measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets measured at FVTPL are expensed in other income (expense), net in the consolidated statements of operating results.

Financial assets carried at amortized cost are measured based on their contractual cash flow characteristics and the business model for which they are held. Financial assets classified as amortized cost are recorded initially at fair value, then subsequently measured at amortized cost using the effective interest method, less any impairment.

Impairment of financial assets

The partnership recognizes an allowance for expected credit losses (“ ECL”) on financial assets including loans receivable and