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ORGANIZATION AND CAPITAL MANAGEMENT
 12 Months Ended
Dec. 31, 2023
Management Commentary Explanatory [Abstract]  
ORGANIZATION AND CAPITAL MANAGEMENT ORGANIZATION AND CAPITAL MANAGEMENT
Brookfield Corporation (the “Corporation”) is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. 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 Corporation is listed on the New York and Toronto stock exchanges (“NYSE” and “TSX”, respectively) under the symbol BN. 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 100, 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 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 business, including investments in entities that it manages, its Insurance Solutions business, 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, 2023, the Corporation’s capital totaled $58.2 billion (December 31, 2022 – $55.4 billion), and is computed as follows:
AS AT DEC. 31
(MILLIONS)
20232022
Cash and cash equivalents$134 $1,282 
Other financial assets4,004 6,870 
Common equity in investments53,523 49,391 
Other assets and liabilities of the Corporation506 (2,170)
Corporation’s Capital$58,167 $55,373 
Corporation’s Capital is comprised of the following:
Common equity$41,674 $39,608 
Preferred equity4,103 4,145 
Non-controlling interest230 230 
Corporate borrowings12,160 11,390 
$58,167 $55,373 
The Corporation generates returns on its capital through management fees and performance revenues earned through its Asset Management business, distributable earnings from its Insurance Solutions business, distributions or dividends earned from its capital invested in managed entities, and through performance of the Corporation’s financial assets. 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, 2023 is as follows:
AS AT DEC. 31, 2023
(MILLIONS)
The CorporationInvestments
Elimination1
Total Consolidated
Cash and cash equivalents$134 $11,088 $— $11,222 
Other financial assets 4,004 24,320 — 28,324 
Accounts receivable and other1
1,191 27,836 (515)28,512 
Inventory— 11,412 — 11,412 
Assets classified as held for sale— 2,489 — 2,489 
Equity accounted investments2,081 57,043 — 59,124 
Investment properties21 124,131 — 124,152 
Property, plant and equipment144 147,473 — 147,617 
Intangible assets84 38,910 — 38,994 
Goodwill— 34,911 — 34,911 
Deferred income tax assets489 2,849 — 3,338 
Accounts payable and other1
(3,383)(56,025)515 (58,893)
Liabilities associated with assets classified as held for sale— (118)— (118)
Deferred income tax liabilities(117)(24,870)— (24,987)
Subsidiary equity obligations(4)(4,141)— (4,145)
Total4,644 397,308 — 401,952 
Common equity in investments2
53,523 —(53,523)— 
Corporation’s Capital58,167 397,308 (53,523)401,952 
Less:
Corporate borrowings12,160 — — 12,160 
Non-recourse borrowings of managed entities— 221,550 — 221,550 
Amounts attributable to preferred equity4,103 — — 4,103 
Amounts attributable to non-controlling interests230 122,235 — 122,465 
Common equity$41,674 $53,523 $(53,523)$41,674 
1.Contains the gross up of intercompany balances, including accounts receivable and other, and accounts payable and other of $515 million and $515 million, respectively, between entities within the Corporation and its investments.
2.Represents the carrying value of the Corporation’s investments.
Common equity in 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 Activities. This measure is equal to the sum of the common equity in our Asset Management, Insurance Solutions, Renewable Power and Transition, Infrastructure, Private Equity, and Real Estate operating segments.
A reconciliation of the Corporation’s capital to the company’s consolidated balance sheet as at December 31, 2022 is as follows:
AS AT DEC. 31, 2022
(MILLIONS)
The CorporationInvestments
Elimination1
Total Consolidated
Cash and cash equivalents$1,282 $13,114 $— $14,396 
Other financial assets 6,87020,029— 26,899 
Accounts receivable and other1
2,19625,431(249)27,378 
Inventory212,841— 12,843 
Assets classified as held for sale—2,830— 2,830 
Equity accounted investments1,46045,634— 47,094 
Investment properties27115,073— 115,100 
Property, plant and equipment146124,122— 124,268 
Intangible assets8138,330— 38,411 
Goodwill—28,662— 28,662 
Deferred income tax assets4752,928— 3,403 
Accounts payable and other1
(6,004)(51,310)249 (57,065)
Liabilities associated with assets classified as held for sale— (876)— (876)
Deferred income tax liabilities(112)(23,078)— (23,190)
Subsidiary equity obligations(441)(3,747)— (4,188)
Total5,982 349,983 — 355,965 
Common equity in investments2
49,391—(49,391)— 
Corporation’s Capital55,373 349,983 (49,391)355,965 
Less:
Corporate borrowings11,390 — — 11,390 
Non-recourse borrowings of managed entities—202,684— 202,684 
Amounts attributable to preferred equity4,145 — — 4,145 
Amounts attributable to non-controlling interests230 97,908 — 98,138 
Common equity$39,608 $49,391 $(49,391)$39,608 
1.Contains the gross up of intercompany balances, including accounts receivable and other, and accounts payable and other of $249 million and $249 million, respectively, between entities within the Corporation and its investments.
2.Represents the carrying value of the Corporation’s investments.