NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1.  CORPORATE INFORMATION 2.  SIGNIFICANT ACCOUNTING POLICIES a)  Statement of Compliance b)  Adoption of Accounting Standards i.  Consolidated Financial Statements  Joint Ventures and Disclosures ii.  Employee Benefits 86 BROOKFIELD ASSET MANAGEMENT  Brookfield Asset Management Inc. (“Brookfield” or the “company”) is a global alternative asset management company. The  company owns and operates assets with a focus on property  renewable energy  infrastructure and private equity. The company is  listed on the New York  Toronto and Euronext stock exchanges under the symbols BAM  BAM.A and BAMA  respectively. The  company was formed by articles of amalgamation under the Business Corporations Act (Ontario) and is registered in Ontario   Canada. The registered office of the company is Brookfield Place  181 Bay Street  Suite 300  Toronto  Ontario  M5J 2T3. These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards  (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These financial statements were authorized for issuance by the Board of Directors of the company on March 28  2014. In 2013  the company has applied new and revised standards issued by the IASB that are effective for the period beginning on  or after January 1  2013 as follows: In May 2011  the IASB issued three standards: IFRS 10   Consolidated Financial Statements  (“IFRS 10”)  IFRS 11   Joint  Arrangements  (“IFRS 11”)  and IFRS 12   Disclosure of Interests in Other Entities  (“IFRS 12”)  and amended two standards:  IAS 27   Separate Financial Statements  (“IAS 27”)  and IAS 28   Investments in Associates and Joint Ventures  (“IAS 28”). IAS 27  is not applicable to the company as it relates only to entities with separate financial statements. IFRS 10 replaces IAS 27 and SIC-12   Consolidation-Special Purpose Entities  (“SIC-12”). The consolidation requirements  previously included in IAS 27 have been included in IFRS 10. IFRS 10 uses control as the single basis for consolidation   irrespective of the nature of the investee  eliminating the risks and rewards approach included in SIC-12. An investor must  have power with existing rights to direct the relevant activities of the investee  have exposure or rights to variable returns from  involvement with the investee  and have the ability to use its power over the investee to affect the amount of its returns in order  to conclude it controls an investee. IFRS 10 requires continuous reassessment if the facts and circumstances change to one or  more of the elements of control. The company applied the principles of IFRS 10 retrospectively  and accordingly resulted in  the consolidation of an investee which was previously equity accounted. The retrospective application of IFRS 10 increased  consolidated assets  liabilities and non-controlling interests by $218 million  $114 million and $104 million  respectively   as at December 31  2012  and increased consolidated revenues and net income by $69 million and $8 million  respectively   for the year then ended  with no impact on common equity or net income attributable to shareholders during the year ended  December 31  2012. IFRS 11 supersedes IAS 31   Interests in Joint Ventures  and SIC-13   Jointly Controlled Entities – Non-Monetary Contributions  by Venturers . IFRS 11 is applicable to all parties that have an interest in a joint arrangement. IFRS 11 establishes two types of  joint arrangements: joint operations and joint ventures. In a joint operation  the parties to the joint arrangement have rights to  the assets and obligations for the liabilities of the arrangement  and recognize their share of the assets  liabilities  revenues and  expenses. In a joint venture  the parties to the joint arrangement have rights to the net assets of the arrangement and account for  their interest using the equity method of accounting under IAS 28. IAS 28 prescribes the accounting for investments in associates  and sets out the requirements for the application of the equity method when accounting for investments in associates and joint  ventures. There was no impact of adoption of IFRS 11 on the company’s consolidated financial statements. IFRS 12 integrates the disclosure requirements of interests in other entities and requires a parent company to disclose information  about significant judgments and assumptions it has made in determining whether it has control  joint control  or significant  influence over another entity  and the type of joint arrangement when the arrangement has been structured through a separate  vehicle. An entity should also provide these disclosures when changes in facts and circumstances affect the entity’s conclusion  during the reporting period. As a result of the adoption of IFRS 12  the company has included more comprehensive disclosures  surrounding consolidated subsidiaries and equity accounted investments in the consolidated financial statements.  In September 2011  the IASB amended IAS 19   Employee Benefits  (“IAS 19”) for items impacting defined benefit plans including  the recognition of: actuarial gains and losses within other comprehensive income; interest on the net benefit liability (or asset)  in profit and loss; and unvested past service costs in profit and loss at either the earlier of when an amendment is made or  when related restructuring or termination costs are recognized. Additionally  the adoption of amendments to IAS 19 required  the company to retroactively exclude expected returns on plan assets from profit and loss  the result of which was a net charge  against common equity of $6 and $10 million as at January 1  2012 and December 31  2012  respectively.