On 30 June 2025, the amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures titled Contracts Referencing Nature-dependent Electricity were endorsed by the European Commission for use in the European Union. The EU’s effective date is the same as the IASB’s effective date (annual periods beginning on or after 1 January 2026).
Amendments were published by the International Accounting Standards Board (IASB) in December 2024.
These targeted amendments have been issued to help companies better report the financial effects of nature-dependent electricity contracts, which are often structured as power purchase agreements (PPAs).
Nature-dependent electricity contracts help companies secure their electricity supply from sources such as wind and solar power. The amount of electricity generated under these contracts can vary due to uncontrollable factors such as weather conditions. Current accounting requirements may not adequately capture how these contracts affect a company’s performance.
To allow companies to better reflect these contracts in their financial statements, the IASB has made targeted amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. The amendments include:
The amendments are effective for annual reporting periods beginning on or after 1 January 2026. Early application is permitted. The amendments shall be applied retrospectively; prior periods need not be restated to reflect the application of the amendments.
You can find more information about Amendments to IFRS 9 and IFRS 7 in our publication iGAAP in Focus — IASB finalises amendments on contracts that reference nature-dependent electricity.
You can find the complete text of the adopted amendments on the official Eur-Lex website.
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