CAPITAL POWER CORPORATION Notes to the Consolidated Financial Statements (Tabular amounts in millions of Canadian dollars, except share and per share amounts) 17. Deferred tax, continued: Movement in temporary differences during the year ended December 31, 2012: Movement in temporary differences during the year ended December 31, 2011: 104 As at January 1, 2011 Recognized in net income Recognized directly in other comprehensive income Amounts relating to gains on acquisitions and disposals Recognized directly in equity Reclassified from equity to net income As at December 31, 2011 Losses carried forward $ 96 $ (4) $ - $ (60) $ 3 $ - $ 35 Difference in accounting and tax basis of property, plant and equipment (124) (52) - 61 (29) 1 (143) Difference in accounting and tax basis of intangible assets (23) 6 - 28 5 - 16 Deferred partnership income (9) 3 - - - - (6) Derivative instruments 13 9 5 (24) 1 - 4 Share issue costs and deferred financing charges 9 (1) - (1) 5 (2) 10 Long-term receivable (7) - - 7 - - - Deferred revenue and other liabilities 13 4 - (5) 2 - 14 Finance lease receivable (6) (1) - - (2) - (9) Decommissioning provisions 24 27 - (17) 4 - 38 Prepaid reclamation amounts (7) (1) - - (2) - (10) Other provisions 3 6 - - - - 9 Long-term investments (14) 7 (1) 8 - - - Other assets (1) 2 - - - - 1 $ (33) $ 5 $ 4 (3) $ (13) $ (1) $ (41) As at January 1, 2012 Recognized in net income Recognized directly in other comprehensive income Amounts relating to gains on acquisitions and disposals Recognized directly in equity Reclassified from equity to net income As at December 31, 2012 Losses carried forward $ 35 $ 24 $ - $ - $ - $ - $ 59 Difference in accounting and tax basis of property, plant and equipment (143) 42 - (9) - - (110) Difference in accounting and tax basis of intangible assets 16 (12) - 3 - - 7 Deferred partnership income (6) 24 - - - - 18 Derivative instruments 4 7 (10) 1 - - 2 Share issue costs and deferred financing charges 10 (6) - - 1 2 7 Long-term receivable - (4) - - - - (4) Deferred revenue and other liabilities 14 4 - 2 - - 20 Finance lease receivable (9) (74) - (1) - - (84) Decommissioning provisions 38 3 - 2 - - 43 Prepaid reclamation amounts (10) (2) - - - - (12) Other provisions 9 1 2 (2) - - 10 Other assets 1 1 - - - - 2 $ (41) $ 8 $ (8) (4) $ 1 $ 2 $ (42)