CAPITAL POWER CORPORATION Notes to the Consolidated Financial Statements (Tabular amounts in millions of Canadian dollars, except share and per share amounts) Impairments of $50 million on property, plant and equipment were recognized during the year ended December 31, 2012 (year ended December 31, 2011 - nil) as described in note 10. No reversals of impairments on property, plant and equipment were recognized during the year ended December 31, 2012 (year ended December 31, 2011 - nil). Details of borrowing costs capitalized as part of property, plant and equipment are given in note 5. The average borrowing rate used to capitalize interest during the year was 5.12% (year ended December 31, 2011 – 5.24%) for projects financed using general borrowings. For the years ended December 31, 2012 and December 31, 2011, there were no projects financed using specific borrowings. Details of charges over land, plant and equipment are provided in note 22. The aggregate carrying amounts of goodwill allocated to the Company’s CGUs are as follows: Impairments of goodwill of $24 million related to the North East U.S. CGU were recorded in the consolidated statement of income for the year ended December 31, 2012 (year ended December 31, 2011 - nil) as described in note 10. 21. Trade and other payables: Impairments 20. Goodwill: Restrictions on assets Capitalized borrowing costs Impairments 19. Property, plant and equipment, continued: December 31, 2012 December 31, 2011 Southport $ 20 $ 20 North East U.S. - 24 Other 2 2 $ 22 $ 46 2012 2011 Cost As at January 1 $ 46 $ 139 Acquisitions through business combinations - 23 Disposal of CPILP - (118) Foreign currency translation adjustments - 2 As at December 31 $ 46 $ 46 Accumulated impairments As at January 1 $ - $ (35) Disposal of CPILP - 35 Impairments (note 10) (24) - As at December 31 $ (24) $ - Net book value As at January 1 $ 46 $ 104 As at December 31 $ 22 $ 46 107 December 31, 2012 December 31, 2011 Operating accruals $ 115 $ 124 Trade payables 49 55 Dividends and distributions payable 31 31 Accrued interest 15 10 $ 210 $ 220