Call for Comments: Draft Endorsement Criteria Assessment on the Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature – dependent Electricity

The UKEB has today published a Draft Endorsement Criteria Assessment (DECA) on the potential use in the UK of the IASB’s Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity.

In December 2024 the IASB published the Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity. The Amendments include:

• Clarification of the application of the “own-use” requirements as set out in paragraph 2.4 of IFRS 9 for certain contracts to purchase nature-dependent electricity.
• Permitting cash flow hedge accounting for contracts in scope, where the hedged item is a variable amount of forecast electricity transactions, and the hedging instrument is a contract referencing nature-dependent electricity.
• New disclosure requirements for contracts within the scope of the Amendments.

The Amendments are effective for annual reporting periods beginning on or after 1 January 2026, with early application permitted.

The UKEB invites stakeholders’ views on the DECA conclusions regarding potential UK adoption of the Amendments.

Stakeholders are invited to provide feedback either via the Invitation to Comment form or by email to UKEndorsementBoard@endorsement-board.uk. Comments are welcome until 9 June 2025.

Visit our website for more information on the UKEB’s approach to this project.