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INVESTMENT PROPERTIES (Tables) | 6 Months Ended
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Jun. 30, 2023
Investment property [abstract] |
Disclosure of detailed information about investment property | The following table presents the change in the fair value of the company’s investment properties:
AS AT AND FOR THE SIX MONTHS ENDED JUN. 30, 2023 (MILLIONS) |  |  |
Fair value, beginning of period | $ | 115,100 |  |  |
Additions | 5,138 |  |  |
Changes in basis of accounting | 29 |  |  |
Dispositions 1 | (1,758) |  |  |
Fair value changes | 778 |  |  |
Foreign currency translation and other | 493 |  |  |
Fair value, end of period 2 | $ | 119,780 |  |  |
1.Includes amounts reclassified to held for sale. 2.As at June 30, 2023, the ending balance includes $4.7 billion of Right-of-use (“ROU”) investment properties (December 31, 2022 – $4.4 billion). The following table summarizes the key valuation metrics of the company’s investment properties:
AS AT JUN. 30, 2023 | Discount Rate |  | Terminal Capitalization Rate |  | Investment Horizon (years) |  |  |  |  |  |
Core | 6.2 | % |  | 4.6 | % |  | 11 |  |  |  |  |  |
Transitional and Development 1 | 7.7 | % |  | 6.0 | % |  | 10 |  |  |  |  |  |
LP Investments 1 | 8.3 | % |  | 5.8 | % |  | 12 |  |  |  |  |  |
Other investment properties 2 | 13.1 | % |  | n/a |  | n/a |  |  |  |  |  |
1.The rates presented are for investment properties valued using the discounted cash flow method. These rates exclude multifamily, triple net lease, student housing, manufactured housing and other investment properties valued using the direct capitalization method. 2.Other investment properties include investment properties held in our direct investments.
Disclosure of fair value measurement of assets [text block] | The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the fair value hierarchy levels:
| 2023 |  | 2022
AS AT JUN. 30, 2023 AND DEC. 31, 2022 (MILLIONS) | Level 1 |  | Level 2 |  | Level 3 |  | Level 1 |  | Level 2 |  | Level 3
Financial assets |  |  |  |  |  |  |  |  |  |  |
Other financial assets |  |  |  |  |  |  |  |  |  |  |
Government bonds | $ | 49 |  |  | $ | 1,572 |  |  | $ | — |  |  | $ | 91 |  |  | $ | 1,475 |  |  | $ | — |
Corporate bonds | 61 |  |  | 1,889 |  |  | 740 |  |  | 65 |  |  | 1,754 |  |  | 324 |
Fixed income securities and other | 408 |  |  | 2,067 |  |  | 4,046 |  |  | 493 |  |  | 2,099 |  |  | 3,376 |
Common shares and warrants | 3,971 |  |  | 769 |  |  | 2,701 |  |  | 3,975 |  |  | 377 |  |  | 2,120 |
Loans and notes receivables | — |  |  | 63 |  |  | 8 |  |  | 22 |  |  | 26 |  |  | 5 |
| 4,489 |  |  | 6,360 |  |  | 7,495 |  |  | 4,646 |  |  | 5,731 |  |  | 5,825 |
Accounts receivable and other | 3 |  |  | 3,553 |  |  | 19 |  |  | 12 |  |  | 3,731 |  |  | 6 |
| $ | 4,492 |  |  | $ | 9,913 |  |  | $ | 7,514 |  |  | $ | 4,658 |  |  | $ | 9,462 |  |  | $ | 5,831 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |
Accounts payable and other | $ | 4 |  |  | $ | 4,558 |  |  | $ | 2,170 |  |  | $ | 7 |  |  | $ | 4,469 |  |  | $ | 2,419 |
Subsidiary equity obligations | — |  |  | 442 |  |  | 512 |  |  | — |  |  | 441 |  |  | 673 |
| $ | 4 |  |  | $ | 5,000 |  |  | $ | 2,682 |  |  | $ | 7 |  |  | $ | 4,910 |  |  | $ | 3,092 |
The following table presents our investment properties measured at fair value:
AS AT JUN. 30, 2023 (MILLIONS) |  |  |
Core | $ | 19,112 |  |  |
Transitional and Development | 24,216 |  |  |
LP Investments | 75,496 |  |  |
Other investment properties | 956 |  |  |
| $ | 119,780 |  |  |
Disclosure of significant unobservable inputs used in fair value measurement of assets [text block] | The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of Level 3 financial instruments:
(MILLIONS) Type of Asset/Liability |  | Carrying Value Jun. 30, 2023 |  | Valuation Techniques |  | Significant Unobservable Inputs |  | Relationship of Unobservable Inputs to Fair Value
Corporate bonds |  | $ | 740 |  |  | Discounted cash flows |  | • Future cash flows |  | • Increases (decreases) in future cash flows increase (decrease) fair value
|  |  |  |  |  | • Discount rate |  | • Increases (decreases) in discount rate decrease (increase) fair value
Fixed income securities and other |  | 4,046 |  |  | Discounted cash flows |  | • Future cash flows |  | • Increases (decreases) in future cash flows increase (decrease) fair value
|  |  |  |  |  | • Discount rate |  | • Increases (decreases) in discount rate decrease (increase) fair value
Common shares and warrants |  | 2,701 |  |  | Discounted cash flows |  | • Future cash flows |  | • Increases (decreases) in future cash flows increase (decrease) fair value
|  |  |  |  |  | • Discount rate |  | • Increases (decreases) in discount rate decrease (increase) fair value
|  |  |  | Black-Scholes model |  | • Volatility |  | • Increases (decreases) in volatility increase (decreases) fair value
|  |  |  |  |  | • Term to maturity |  | • Increases (decreases) in term to maturity increase (decrease) fair value
Derivative assets/Derivative liabilities (accounts receivable/payable) |  | 19 / (2,170) |  | Discounted cash flows |  | • Future cash flows |  | • Increases (decreases) in future cash flows increase (decrease) fair value
|  |  |  |  |  | • Discount rate |  | • Increases (decreases) in discount rate decrease (increase) fair value
Limited-life funds (subsidiary equity obligations) |  | (512) |  |  | Discounted cash flows |  | • Future cash flows |  | • Increases (decreases) in future cash flows increase (decrease) fair value
|  |  |  |  |  | • Discount rate |  | • Increases (decreases) in discount rate decrease (increase) fair value
|  |  |  |  |  | • Terminal capitalization rate |  | • Increases (decreases) in terminal capitalization rate decrease (increase) fair value
|  |  |  |  |  | • Investment horizon |  | • Increases (decreases) in the investment horizon decrease (increase) fair value
Significant unobservable inputs (Level 3) are utilized when determining the fair value of investment properties. The significant Level 3 inputs include:
Valuation Technique |  | Significant Unobservable Inputs |  | Relationship of Unobservable Inputs to Fair Value |  | Mitigating Factors
Discounted cash flow analysis 1 |  | • Future cash flows – primarily driven by net operating income |  | • Increases (decreases) in future cash flows increase (decrease) fair value |  | •Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in fair value from cash flows
|  | • Discount rate |  | •Increases (decreases) in discount rate decrease (increase) fair value |  | •Increases (decreases) in discount rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from discount rates
|  | • Terminal capitalization rate |  | •Increases (decreases) in terminal capitalization rate decrease (increase) fair value |  | •Increases (decreases) in terminal capitalization rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from terminal capitalization rates
|  | • Investment horizon |  | •Increases (decreases) in the investment horizon decrease (increase) fair value |  | •Increases (decreases) in the investment horizon tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year
1.Certain investment properties are valued using the direct capitalization method instead of a discounted cash flow model. Under the direct capitalization method, a capitalization rate is applied to estimated current year cash flows.

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