Algonquin Power & Utilities Corp. – Consolidated Financial Statements ALGONQUIN POWER & UTILITIES CORP.  Notes to the Consolidated Financial Statements  December 31, 2012 and 2011   (in thousands of Canadian dollars except as noted and amounts per share)  In May 2011, the FASB issued ASU No. 2011-04 “Fair Value Measurement (Topic 820)”.  This ASU amends the accounting and disclosure requirements for fair value measurements.  The new guidance expands the disclosures about fair value measurements categorized  within Level 3 of the fair value hierarchy and requires categorization by level of the fair value  hierarchy for items that are not measured at fair value in the statement of financial position  but for which the fair value is required to be disclosed. The adoption of this guidance in 2012  did not have a material impact on the Company’s consolidated financial statements.  The FASB issued ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting  Assets and Liabilities and ASU 2013-01 Clarifying the Scope of Disclosures about Offsetting  Assets and Liabilities. These newly issued accounting standards require an entity to disclose  both gross and net information about instruments and transactions eligible for offset in the  statement of financial position as well as instruments and transactions executed under a  master netting or similar arrangement and was issued to enable users of financial  statements to understand the effects or potential effects of those arrangements on an entity’s  financial position. These ASU are required to be applied retrospectively and are effective for  fiscal years, and interim periods beginning on or after January 1, 2013. As these accounting  standards only require enhanced disclosure, the adoption of these standards is not expected  to have an impact the Company’s financial position or results of operations.  The FASB issued ASU 2013-02, Comprehensive Income (Topic 220). This newly issued  accounting standard requires an entity to provide information about the amounts reclassified  out of accumulated other comprehensive income by component. In addition, an entity is  required to present, either on the face of the statement where net income is presented or in  the notes, significant amounts reclassified out of accumulated other comprehensive income  by the respective line items of net income but only if the amount reclassified is required  under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period.  For other amounts that are not required under U.S. GAAP to be reclassified in their entirety  to net income, an entity is required to cross-reference to other disclosures required under  U.S. GAAP that provide additional detail about those amounts. This ASU is required to be  applied prospectively for fiscal years, and interim periods beginning after December 15,  2012. As this accounting standard only requires enhanced disclosure, the adoption of this  standard is not expected to have an impact the Company’s financial position or results of  operations.  2012 Annual Report 90 (b) Recent accounting guidance not yet adopted  (a) Recently adopted accounting pronouncements 2.  Recently issued accounting pronouncements