DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2017

Financial Instruments [Abstract]

Notional amount of derivative positions

The aggregate notional amount of the company’s derivative positions at December 31, 2017 and 2016 is as follows:

AS AT DEC. 31 ($ MILLIONS)	Note	2017		2016
Foreign exchange	(a)	$	28,573	$	21,782
Interest rates	(b)	18,433		17,092
Credit default swaps	(c)	43		182
Equity derivatives	(d)	1,384		2,583
Commodity instruments	(e)	2017		2016
Energy (GWh)		28,808		15,904
Natural gas (MMBtu – 000’s)		48,163		9,150

Disclosure of information about terms and conditions of hedging instruments

The following table presents the notional amounts underlying the company’s derivative instruments by term to maturity as at December 31, 2017 and the comparative notional amounts at December 31, 2016, for derivatives that are classified as fair value through profit or loss, and derivatives that qualify for hedge accounting:

	2017								2016
AS AT DEC. 31 ($ MILLIONS)	<1 Year		1 to 5 Years		>5 Years		Total Notional Amount		Total Notional Amount
Fair value through profit or loss
Foreign exchange derivatives	$	5,516	$	4,074	$	1,042	$	10,632	$	5,065
Interest rate derivatives	7,287		4,034		211		11,532		7,838
Credit default swaps	—		43		—		43		182
Equity derivatives	680		682		—		1,362		2,560
Commodity instruments
Energy (GWh)	5,328		7,894		—		13,222		7,343
Natural gas (MMBtu – 000’s)	2,459		690		—		3,149		9,150
Elected for hedge accounting
Foreign exchange derivatives	$	12,674	$	3,391	$	1,876	$	17,941	$	16,717
Interest rate derivatives	607		5,184		1,110		6,901		9,254
Equity derivatives	10		12		—		22		24
Commodity instruments
Energy (GWh)	1,412		11,494		2,680		15,586		8,561
Natural gas (MMBtu – 000’s)	37,052		7,962		—		45,014		—

The company held the following foreign exchange contracts with notional amounts at December 31, 2017 and December 31, 2016:

	Notional Amount (U.S. Dollars)				Average Exchange Rate
(MILLIONS)	2017		2016		2017		2016
Foreign exchange contracts
British pounds	$	7,312	$	6,231	$	1.29	$	1.26
Australian dollars	3,610		5,022		0.75		0.74
European Union euros	2,754		1,855		1.15		1.11
Canadian dollars	2,619		1,405		0.78		0.75
Korean won	578		485		1,100		1,153
Chinese yuan	346		252		6.72		7.06
Brazilian reais	62		511		0.27		0.32
Japanese yen	14		203		110.17		116.39
Other currencies	256		186		various		various
Cross currency interest rate swaps
Canadian dollars	2,442		2,269		0.76		0.82
European Union euros	1,914		530		1.06		1.06
Australian dollars	1,610		1,484		0.98		0.99
Japanese yen	750		—		113.33		—
Colombian pesos	299		125		3,056		3,056
British pounds	272		249		1.45		1.49
Foreign exchange options
European Union euros	1,801		—		1.21		—
Canadian dollars	1,000		—		0.76		—
British pounds	534		—		1.19		—
Japanese yen	400		975		118.00		118.00

Disclosure of derivatives elected for hedge accounting

The following table classifies derivatives elected for hedge accounting during the years ended December 31, 2017 and 2016 as either cash flow hedges or net investment hedges. Changes in the fair value of the effective portion of the hedge are recorded in either other comprehensive income or net income, depending on the hedge classification, whereas changes in the fair value of the ineffective portion of the hedge are recorded in net income:

	2017								2016
FOR THE YEARS ENDED DECEMBER 31 (MILLIONS)	Notional		Effective Portion			Ineffective Portion			Notional		Effective Portion		Ineffective Portion
Cash flow hedges1	$	10,254	$	42		$	(16	)	$	11,998	$	149	$	(13	)
Net investment hedges	14,587		(748		)	—			13,973		129		—
	$	24,841	$	(706	)	$	(16	)	$	25,971	$	278	$	(13	)

1. Notional amount does not include 15,586 GWh, 45,014 MMBtu and 3,087 bbls and 8,561 GWh of commodity derivatives at December 31, 2017 and December 31, 2016, respectively

Disclosure of change in fair value of derivatives impact on comprehensive income

The following table presents the change in fair values of the company’s derivative positions during the years ended December 31, 2017 and 2016, for derivatives that are fair valued through profit or loss, and derivatives that qualify for hedge accounting:

(MILLIONS)	Unrealized Gains During 2017		Unrealized Losses During 2017			Net Change During 2017			Net Change During 2016
Foreign exchange derivatives	$	119	$	(483	)	$	(364	)	$	(62	)
Interest rate derivatives	20		(35		)	(15		)	110
Credit default swaps	2		—			2			(5		)
Equity derivatives	204		(35		)	169			(9		)
Commodity derivatives	69		(103		)	(34		)	9
	$	414	$	(656	)	$	(242	)	$	43