Adjusted net asset value is presented for Power Corporation and represents management’s estimate of the fair value of the participating shareholders’ equity of the Corporation. Adjusted net asset value is calculated as the fair value of the assets of the combined Power Corporation and Power Financial holding company less their net debt and preferred shares. The Corporation’s adjusted net asset value is presented on a look-through basis.

(1) The Corporation’s share of GBL’s reported net asset value was $3.8 billion (€2.6 billion) at December 31, 2022 ($4.7 billion (€3.3 billion) at December 31, 2021).
(2) Includes the management companies of the investment platforms at their carrying value.
(3) An additional deferred tax liability of $13 million has been included in the adjusted net asset value at December 31, 2022 ($80 million at December 31, 2021) with respect to the investments in standalone businesses at fair value, without taking into account possible tax planning strategies. The Corporation has tax attributes (not otherwise recognized on the balance sheet) that could be available to minimize the tax if the Corporation were to dispose of its interests held in the standalone businesses.  
(4) In accordance with IAS 12, Income Taxes, no deferred tax liability is recognized with respect to temporary differences associated with investments in subsidiaries and jointly controlled corporations as the Corporation is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. If the Corporation were to dispose of an investment in a subsidiary or a jointly controlled corporation, income taxes payable on such disposition would be minimized through careful and prudent tax planning and structuring, as well as with the use of available tax attributes not otherwise recognized on the balance sheet, including tax losses, tax basis, safe income and foreign tax surplus associated with the subsidiary or jointly controlled corporation.
(5) At December 31, 2022, an additional deferred tax liability of $37 million ($39 million at December 31, 2021) has been included in the adjusted net asset value related to the investment in ChinaAMC at fair value. 
(6) The presentation of the participating shareholders’ equity of the Corporation at fair value is not in accordance with IFRS. Adjusted net asset value is a non-IFRS financial measure, and adjusted net asset value per share is a non-IFRS ratio. Non-IFRS financial measures (including non-IFRS ratios) do not have a standard meaning and may not be comparable to similar measures used by other entities. For definitions, further explanations of uses and reconciliations of non-IFRS financial measures to measures prescribed by IFRS, refer to the section “Non-IFRS Financial Measures” and specifically the sub-section entitled “Adjusted Net Asset Value” included in the section entitled “Reconciliations of IFRS and Non-IFRS Financial Measures” of Part A of the Corporation’s most recent Management’s Discussion and Analysis, located under the Corporation’s profile on SEDAR at www.sedar.com, which sections, definitions, explanations and reconciliations are incorporated herein by reference.

In determining the fair value of assets, investments in subsidiaries, jointly controlled corporations and associates are adjusted to fair value as follows:

• Investments in publicly traded companies are valued at their market value, measured as the closing share price on the reporting date;
• Investments in private entities are valued at fair value based on management’s estimate using consistently applied valuation models either based on a valuation multiple or discounted cash flows. Certain valuations are prepared by external valuators or subject to review by external valuators. Market-comparable transactions are generally used to corroborate the estimated fair value. The value of investments in private entities is presented net of any management incentives;
• Investments in investment funds are valued at the fair value reported by the fund which is net of carried interest or other incentives.

Investments measured at market value and cash represent 88.7% of the total assets at fair value at December 31, 2022 (89.7% at December 31, 2021).