Amendments to IFRS 9 and IFRS 7: Important changes for the accounting treatment of nature-dependent electricity supply contracts

published on 24 March 2025 | reading time approx. 1 minute

Electricity production from renewable energy sources, such as wind and solar energy, is dependent on environmental factors and is therefore subject to fluctuations. With the amendments to IFRS 9 and IFRS 7, the IASB is responding to the resulting challenges for the accounting treatment of power purchase agreements that relate to nature-dependent electricity.

The most important changes at a glance:

Own use exemption: Use of the own use exemption is now also possible for interim sales of unused nature-based electricity if the new “net buyer” criterion is met.
Hedge accounting: Allows hedge accounting if contracts relating to nature-dependent electricity are used as hedging instruments.
Disclosures in the notes: Extension of disclosure requirements to enable users to understand the impact of such contracts on the financial performance of entities.

First-time application: The mandatory first-time application already affects financial years beginning on or after January 1, 2026. Specific transitional provisions apply. Companies should therefore act quickly:

Analyze your contracts promptly and check the impact of the changes on your financial statements
Adapt your internal accounting processes and reporting structures at an early stage
Talk to your advisor or auditor to ensure clarity in good time

Further details and information on IFRS 9 and IFRS 7 can be found in the detailed » background article.