Amendments to IFRS 9, 7 and 19 for nature-dependent electricity

International Accounting Standards Board (IASB) issues amendments to IFRS 9, IFRS 7 and IFRS 19 addressing the accounting for contracts referencing nature-dependent electricity.

Contracts that reference nature-dependent electricity production, also known as power purchase agreements (PPAs), are contracts to buy and take delivery of electricity that is produced from nature-dependent sources. As generation of renewable energy has increased, so has the number of PPAs.

The IFRS Interpretations Committee (IFRIC) received requests for clarification on how IFRS 9 should be applied to these contracts, and following stakeholder feedback the IASB decided to add a narrow-scope standard-setting project to its work plan to address these issues.