BC39I In December 2024, the Board issued Contracts Referencing Nature-dependent Electricity, which amended IFRS 9 and IFRS 7. The amendments to IFRS 9 enable entities to include information in their financial statements that more faithfully represents contracts referencing nature-dependent electricity (as described in paragraph 2.3A of IFRS 9). Stakeholders said that the accounting treatment of these contracts after applying the amendments to IFRS 9 warrants greater transparency. These contracts, whether settled with the delivery of electricity or settled net in cash or another financial instrument, expose the entity to variability in the underlying amount of electricity because the source of electricity generation depends on uncontrollable natural conditions. The Board concluded that some additional disclosures would be relevant for all contracts that have these characteristics.

Scope

BC39J The Board noted that other IFRS Accounting Standards include disclosure requirements that might apply to contracts referencing nature-dependent electricity that have the characteristics described in paragraph 2.3A of IFRS 9. The Board concluded that other IFRS Accounting Standards include enough disclosure requirements for: