Draft Comment Letter: IASB Exposure Draft— Contracts for Renewable Electricity

The UKEB today issued a Draft Comment Letter (DCL) for public consultation in response to the IASB’s Exposure Draft on Contracts for Renewable Electricity.

The UKEB supports the IASB’s work on this project. However, it has some concerns with the proposed amendments to the ‘own use’ requirements in IFRS 9 due to lack of a clear conceptual basis. Instead, the Board recommends that the IASB retains the current requirements. The DCL does, however, notes broad support for the hedge accounting and disclosure proposals in the Exposure Draft.

Stakeholder views on the UKEB’s DCL are welcome. 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 19 July 2024.

For further details on the Power Purchase Agreements project and the Exposure Draft, see the UKEB project page and the IASB website.