1. IAS 16―Property, Plant & Equipment IFRS vs. GAAP AUDIT The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. © 2009 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 20399KCG

2. 1 PP&E/Initial recording IFRS Property, plant and equipment is recognized initially at cost. Cost includes all expenditure directly attributable to bringing the asset to the location and working condition for its intended use. US GAAP Like IFRSs, property, plant and equipment is recognized initially at cost. Like IFRSs, cost included all expenditure directly attributable to bringing this asset to the location and working condition for its intended use.

3. 2 PP&E/Salvage IFRS Cost included the cost of dismantling and removing the asset and restoring the site. Changes to an existing decommissioning or restoration obligation generally are added to or deducted from the cost of the related assets and depreciated prospectively over its remaining useful life. US GAAP Like IFRSs, cost included the cost of dismantling and removing the asset and restoring the site. Like IFRSs, changes to an existing decommissioning or restoration obligation generally are added to or deducted from the cost of the related asset and depreciated prospectively over its remaining useful life.

4. 3 PP&E/Depreciation IFRS Property, plant and equipment is depreciated over its useful life. An item of property, plant and equipment is depreciated even if it is idle, but not if it is held for sale. US GAAP Like IFRSs, property, plant and equipment is depreciated over its useful life. Like IFRSs, an item of property, plant and equipment is depreciated even if it is idle, but not if it is held for sale.

5. 4 PP&E/Decreciation IFRS Estimates of useful life and residual value, and the method of depreciation, are reviewed at least at each annual reporting date. Any changes are accounted for prospectively as a change in estimate. US GAAP Unlike IFRSs, estimates of useful life and residual value, and the method of depreciation, are reviewed only when events or changes in circumstances indicate that the current estimates or depreciation method no longer are appropriate. Like IFRSs, any changes are accounted for prospectively as a change in estimate.

6. 5 PP&E/Depreciation & subsequent expenditures IFRS When an item of property, plant and equipment comprises individual components for which different depreciation methods or rates are appropriate, each component is depreciated separately. Subsequent expenditure is capitalized only when it is probable that it will give rise to future economic benefits. US GAAP Unlike IFRSs, component accounting is permitted but not required. Like IFRSs, subsequent expenditure is capitalized only when it is probable that it will give rise to future economic benefits.

7. 6 PP&E/Revaluation IFRS Property, plant and equipment may be revalued to fair value if fair value can be measured reliably. All items in the same class are revalued at the same time and the revaluations are kept up to date. US GAAP Unlike IFRSs, the revaluation of property, plant and equipment is not permitted.

8. 7 PP&E/Impairment & recording disposals IFRS Compensation for loss or impairment cannot be offset against the carrying amount of the asset lost or impaired. The gain or loss on disposal is the difference between the net proceeds received and the carrying amount of the asset. US GAAP Like IFRSs, compensation for loss or impairment cannot be offset against the carrying amount of the asset lost or impaired. Like IFRSs, the gain or loss on disposal is the difference between the net proceeds received and the carrying amount of the asset.

9. 8 Other matters Regulatory assets and liabilities Emission allowances Inventories

10. 9 Resume John has 28 years of public accounting experience. He has extensive experience in providing audit and process review services for utility/energy companies. Over the past several years John has served as lead engagement partner for four SEC registrants including two investor owned utilities. John also has significant experience in working with municipal utilities. In addition he has substantial experience in Sarbanes requirements, regulation, IPO’s, registration statements and business combinations and international audits. He has testified in regulatory proceedings before the Kansas Corporation Commission. Background John graduated from the University of Missouri in Columbia. He is a licensed CPA, as well as a member of the American Institute of Certified Public Accountants and Missouri and Kansas Certified Public Accountants societies. John is a past Advisory Board member for the University of Missouri School of Accounting and is a presenter at various energy and utility industry conferences. John is currently a board member for the Children’s Center for the Visually Impaired. John F. Lathrop Partner 1000 Walnut Street, Suite 1000 Kansas City, Missouri 64106 816-802-5882 jlathrop@kpmg.com