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

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.