The following table provides the carrying values and fair values of financial instruments as at December 31, 2013 and  December 31, 2012: (MILLIONS)  Financial assets Cash and cash equivalents  Other financial assets  Government bonds  Corporate bonds  Fixed income securities  Common shares and warrants  Loans and notes receivable  Accounts receivable and other  Financial liabilities Corporate borrowings  Property-specific mortgages  Subsidiary borrowings  Accounts payable and other  Capital securities  Interests of others in consolidated funds  The current and non-current balances of other financial assets are as follows: (MILLIONS) Current Non-current  Total The company uses derivatives and non-derivative financial instruments to manage or maintain exposures to interest, currency,  credit and other market risks. For certain derivatives which are used to manage exposures, the company determines whether  hedge accounting can be applied. When hedge accounting may be applied, a hedge relationship may be designated as a fair value  hedge, cash flow hedge or a hedge of foreign currency exposure of a net investment in a foreign operation. To qualify for hedge  accounting, the derivative must be highly effective in accomplishing the objective of offsetting changes in the fair value or cash  flows attributable to the hedged risk both at inception and over the life of the hedge. If it is determined that the derivative is not  highly effective as a hedge, hedge accounting is discontinued prospectively. The company uses the following cash flow hedges: energy derivative contracts to hedge the sale of power; interest rate swaps to  hedge the variability in cash flows or future cash flows related to a variable rate asset or liability; and equity derivatives to hedge  the long-term compensation arrangements. For the year ended December 31, 2013, pre-tax net unrealized gains of $29 million  (2012 – loss of $36 million) were recorded in other comprehensive income for the effective portion of the cash flow hedges. As at  December 31, 2013, there was a net unrealized derivative asset balance of $30 million relating to derivative contracts designated  as cash flow hedges (2012 – liability of $272 million). The unrealized losses on cash flow hedges are expected to be realized in  net income by 2024. The company uses foreign exchange contracts and foreign currency denominated debt instruments to manage its foreign currency  exposures arising from net investments in foreign operations. For the year ended December 31, 2013, unrealized pre-tax net  gains of $1 million (2012 – losses of $207 million) were recorded in other comprehensive income for the effective portion of  hedges of net investments in foreign operations. As at December 31, 2013, there was a net unrealized derivative liability balance  of $70 million relating to derivative contracts designated as net investment hedges (2012 – $79 million). 110 BROOKFIELD ASSET MANAGEMENT  ii.  Net Investment Hedges i.  Cash Flow Hedges Hedging Activities Dec. 31, 2013 Dec. 31, 2012 $ 942 $ 380 4,005 2,731 $ 4,947 $ 3,111 Dec. 31, 2013 Carrying Value Fair Value $ 3,663 $ 3,663 179 179 319 319 212 212 2,758 2,758 1,479 1,479 4,947 4,947 5,176 5,176 $ 13,786 $ 13,786 $ 3,975 $ 4,323 35,495 36,389 7,392 7,225 10,316 10,316 791 812 1,086 1,086 $ 59,055 $ 60,151 Dec. 31, 2012 Carrying Value Fair Value $ 2,850 $ 2,850 178 178 238 238 145 145 2,034 2,034 516 516 3,111 3,111 5,225 5,225 $ 11,186 $ 11,186 $ 3,526 $ 3,793 33,720 35,053 7,585 7,781 11,652 11,652 1,191 1,232 425 425 $ 58,099 $ 59,936