XML 44 R9.htm IDEA: XBRL DOCUMENT
v3.22.1

ORGANIZATION AND CAPITAL MANAGEMENT | 12 Months Ended
--- | ---
Dec. 31, 2021
Management Commentary Explanatory [Abstract] |
ORGANIZATION AND CAPITAL MANAGEMENT | ORGANIZATION AND CAPITAL MANAGEMENT Brookfield Asset Management Inc. (the “Corporation”) is a global alternative asset management company. References in these financial statements to “Brookfield,” “us,” “we,” “our” or “the company” refer to the Corporation and its direct and indirect subsidiaries and consolidated entities. The company owns and operates assets with a focus on renewable power and transition, infrastructure, private equity, real estate and credit. The Corporation is listed on the New York and Toronto stock exchanges under the symbols BAM and BAM.A, respectively. The Corporation was formed by articles of amalgamation under the Business Corporations Act (Ontario) and is registered in Ontario, Canada. The registered office of the Corporation is Brookfield Place, 181 Bay Street, Suite 300, Toronto, Ontario, M5J 2T3. Capital Management The company utilizes the Corporation’s Capital to manage the business in a number of ways, including operating performance, value creation, credit metrics and capital efficiency. The performance of the Corporation’s Capital is closely tracked and monitored by the company’s key management personnel and evaluated relative to management’s objectives. The primary goal of the company is to earn a 12-15% return compounded over the long term while always maintaining excess capital to support ongoing operations. The Corporation’s Capital consists of the capital invested in its asset management activities, including investments in entities that it manages, its corporate investments that are held outside of managed entities and its net working capital. The Corporation’s Capital is funded with common equity, preferred equity and corporate borrowings issued by the Corporation. As at December 31, 2021, the Corporation’s Capital totaled $57.5 billion (2020 – $45.1 billion), and is computed as follows:
AS AT DEC. 31 (MILLIONS) |  |  |  |  | 2021 |  | 2020
Cash and cash equivalents |  |  |  |  | $ | 1,197 |  |  | $ | 1,283 |
Other financial assets |  |  |  |  | 3,430 |  |  | 3,809 |
Common equity in managed investments |  |  |  |  | 46,248 |  |  | 33,732 |
Other assets and liabilities of the Corporation |  |  |  |  | 6,585 |  |  | 6,321 |
Corporation’s Capital |  |  |  |  | $ | 57,460 |  |  | $ | 45,145 |
Corporation’s Capital is comprised of the following: |  |  |  |  |  |  |
Common equity |  |  |  |  | $ | 42,210 |  |  | $ | 31,693 |
Preferred shares |  |  |  |  | 4,145 |  |  | 4,145 |
Non-controlling interest |  |  |  |  | 230 |  |  | 230 |
Corporate borrowings |  |  |  |  | 10,875 |  |  | 9,077 |
|  |  |  |  | $ | 57,460 |  |  | $ | 45,145 |
The Corporation generates returns on its capital through management fees and performance revenues earned as an asset manager, as well as distributions or dividends earned from its capital invested in managed entities, and through performance of the Corporation’s financial asset investments. Prudent levels of corporate borrowings and preferred equity are utilized to enhance returns to shareholders’ common equity. A reconciliation of the Corporation’s Capital to the company’s consolidated balance sheet as at December 31, 2021 is as follows:
AS AT DEC. 31, 2021 (MILLIONS) |  |  | The Corporation |  | Managed Investments |  | Elimination 1 |  | Total Consolidated |
Cash and cash equivalents |  |  | $ | 1,197 |  |  | $ | 11,497 |  |  | $ | — |  |  | $ | 12,694 |  |
Other financial assets |  |  | 3,430 |  |  | 13,116 |  |  | — |  |  | 16,546 |  |
Accounts receivable and other 1 |  |  | 2,697 |  |  | 19,694 |  |  | (631) |  |  | 21,760 |  |
Inventory |  |  | 2 |  |  | 11,413 |  |  | — |  |  | 11,415 |  |
Assets classified as held for sale |  |  | — |  |  | 11,958 |  |  | — |  |  | 11,958 |  |
Equity accounted investments |  |  | 6,553 |  |  | 39,547 |  |  | — |  |  | 46,100 |  |
Investment properties |  |  | 16 |  |  | 100,849 |  |  | — |  |  | 100,865 |  |
Property, plant and equipment |  |  | 215 |  |  | 115,274 |  |  | — |  |  | 115,489 |  |
Intangible assets |  |  | 215 |  |  | 30,394 |  |  | — |  |  | 30,609 |  |
Goodwill |  |  | 361 |  |  | 19,866 |  |  | — |  |  | 20,227 |  |
Deferred income tax assets |  |  | 2,064 |  |  | 1,276 |  |  | — |  |  | 3,340 |  |
Accounts payable and other 1 |  |  | (5,104) |  |  | (48,073) |  |  | 631 |  |  | (52,546) |  |
Liabilities associated with assets classified as held for sale |  |  | — |  |  | (3,148) |  |  | — |  |  | (3,148) |  |
Deferred income tax liabilities |  |  | (299) |  |  | (20,029) |  |  | — |  |  | (20,328) |  |
Subsidiary equity obligations |  |  | (135) |  |  | (4,173) |  |  | — |  |  | (4,308) |  |
Total |  |  | 11,212 |  |  | 299,461 |  |  | — |  |  | 310,673 |  |
Common equity in managed investments 2 |  |  | 46,248 |  | — |  | (46,248) |  |  | — |  |
Corporation’s Capital |  |  | 57,460 |  |  | 299,461 |  |  | (46,248) |  |  | 310,673 |  |
Less: |  |  |  |  |  |  |  |  |  |
Corporate borrowings |  |  | 10,875 |  |  | — |  |  | — |  |  | 10,875 |  |
Non-recourse borrowings of managed entities |  |  | — |  |  | 165,057 |  |  | — |  |  | 165,057 |  |
Amounts attributable to preferred equity |  |  | 4,145 |  |  | — |  |  | — |  |  | 4,145 |  |
Amounts attributable to non-controlling interests |  |  | 230 |  |  | 88,156 |  |  | — |  |  | 88,386 |  |
Common equity |  |  | $ | 42,210 |  |  | $ | 46,248 |  |  | $ | (46,248) |  |  | $ | 42,210 |  |
1. Contains the gross up of intercompany balances, including accounts receivable and other, and accounts payable and other of $631 million and $631 million, respectively, between entities within the Corporation and its managed investments. 2. Represents the value of the Corporation’s managed investments. Common equity in managed investments is a measure routinely evaluated by our company’s key management personnel and represents the net equity in our consolidated financial statements outside of our corporate and asset management segments, excluding non-controlling interests. This measure is equal to the sum of the common equity in our Renewable Power and Transition, Infrastructure, Private Equity, Real Estate and Residential Development operating segments. A reconciliation of the Corporation’s Capital to the company’s consolidated balance sheet as at December 31, 2020 is as follows:
AS AT DEC. 31, 2020 (MILLIONS) |  |  | The Corporation |  | Managed Investments |  | Elimination 1 |  | Total Consolidated |
Cash and cash equivalents |  |  | $ | 1,283 |  |  | $ | 8,650 |  |  | $ | — |  |  | $ | 9,933 |  |
Other financial assets |  |  | 3,809 |  | 13,921 |  | — |  |  | 17,730 |  |
Accounts receivable and other 1 |  |  | 3,632 |  | 17,401 |  | (2,105) |  |  | 18,928 |  |
Inventory |  |  | 2 |  | 10,358 |  | — |  |  | 10,360 |  |
Assets classified as held for sale |  |  | — |  | 5,917 |  | — |  |  | 5,917 |  |
Equity accounted investments |  |  | 5,361 |  | 35,966 |  | — |  |  | 41,327 |  |
Investment properties |  |  | 17 |  | 96,765 |  | — |  |  | 96,782 |  |
Property, plant and equipment |  |  | 122 |  | 99,887 |  | — |  |  | 100,009 |  |
Intangible assets |  |  | 285 |  | 24,373 |  | — |  |  | 24,658 |  |
Goodwill |  |  | 368 |  | 14,346 |  | — |  |  | 14,714 |  |
Deferred income tax assets |  |  | 2,159 |  | 1,179 |  | — |  |  | 3,338 |  |
Accounts payable and other 1 |  |  | (5,134) |  |  | (47,653) |  |  | 2,105 |  |  | (50,682) |  |
Liabilities associated with assets classified as held for sale |  |  | — |  |  | (2,359) |  |  | — |  |  | (2,359) |  |
Deferred income tax liabilities |  |  | (414) |  |  | (15,499) |  |  | — |  |  | (15,913) |  |
Subsidiary equity obligations |  |  | (77) |  |  | (3,622) |  |  | — |  |  | (3,699) |  |
Total |  |  | 11,413 |  |  | 259,630 |  |  | — |  |  | 271,043 |  |
Common equity in managed investments 2 |  |  | 33,732 |  | — |  | (33,732) |  |  | — |  |
Corporation’s Capital |  |  | 45,145 |  |  | 259,630 |  |  | (33,732) |  |  | 271,043 |  |
Less: |  |  |  |  |  |  |  |  |  |
Corporate borrowings |  |  | 9,077 |  |  | — |  |  | — |  |  | 9,077 |  |
Non-recourse borrowings of managed entities |  |  | — |  | 139,324 |  | — |  |  | 139,324 |  |
Amounts attributable to preferred equity |  |  | 4,145 |  |  | — |  |  | — |  |  | 4,145 |  |
Amounts attributable to non-controlling interests |  |  | 230 |  |  | 86,574 |  |  | — |  |  | 86,804 |  |
Common equity |  |  | $ | 31,693 |  |  | $ | 33,732 |  |  | $ | (33,732) |  |  | $ | 31,693 |  |
1. Contains the gross up of intercompany balances, including accounts receivable and other, and accounts payable and other of $2.1 billion and $2.1 billion, respectively, between entities within the Corporation and its managed investments. 2.Represents the value of the Corporation’s managed investments.

X
- Definition Management Commentary Explanatory [Abstract] + References No definition available. + Details
Name: | bam_ManagementCommentaryExplanatoryAbstract
Namespace Prefix: | bam_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of notes and other explanatory information as part of a complete set of financial statements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 1 -IssueDate 2021-01-01 -Paragraph 10 -Subparagraph e -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2021-en-r&anchor=para_10_e&doctype=Standard -URIDate 2021-03-24 + Details
Name: | ifrs-full_DisclosureOfNotesAndOtherExplanatoryInformationExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration