23/12/2024 - EFRAG Seeks Comments on its Draft Endorsement Advice on Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7
EFRAG published its Draft Endorsement Advice on Contracts Referencing Nature-dependent Electricity. Submit your comment by 13 January 2025.
EFRAG has published its Draft Endorsement Advice (DEA) on Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7 (‘the Amendments’) and invites stakeholders to submit comments by 13 January 2025.
EFRAG is consulting on its assessment of the Amendments against the technical criteria for endorsement in the EU, and on its assessment of whether the Amendments are conducive to the European public good.
The objective of the Amendments is to better reflect the effects of physical and virtual nature-dependent electricity contracts in the financial statements through narrow-scope amendments to the own-use assessment, hedge accounting and disclosure requirements.
The Amendments should be applied retrospectively for the own-use amendments and prospectively for the hedge accounting amendments for annual periods beginning on or after 1 January 2026, with earlier application permitted.
EFRAG’s overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends their endorsement. EFRAG is seeking comments on all aspects of its analysis supporting the preliminary conclusions.
To share comments on the draft endorsement advice letter:
download and complete the invitation to comment form;
submit your comment letter through the online form.
Comments
are requested by 13 January 2025.
EFRAG has also updated its Endorsement Status Report, which is available here.
- Power Purchase Agreements
- 13/01/2025
- Comment publication
