Power Purchase Agreements
- Active
- Exposure draft consultation
- Didrik Thrane-Nielsen, Aleksandra Sivash, Juan Jose Gomez de la Calzada
Description
In July 2023, the IASB decided to add a project to its work plan to research whether feasible narrow-scope amendments to IFRS 9 to better reflect the effect of Power Purchase Agreements (PPAs) on the financial statements.
In December 2023, based on the outcome of the IASB Staff research, the IASB tentatively decided to:
- to undertake narrow-scope standard-setting to amend IFRS 9 Financial Instruments, with the next project milestone to be an exposure draft; and
- to explore an approach to this standard-setting that includes amending the ‘own use’ and hedge accounting requirements in IFRS 9 for both physical PPAs and virtual PPAs.
On 08 May 2024 the International Accounting Standards Board (IASB) published for public comment the Exposure Draft Contracts for Renewable Electricity, which proposes narrow-scope amendments to IFRS 9 and IFRS 7.
The Exposure Draft is open for comments until 7 August 2024.
Draft Comment Letter
On 13 June 2024 EFRAG issued its draft comment letter ('DCL'), welcoming IASB's efforts and approach addressing both own-use exception requirements as well as hedge accounting requirements.
Several specific questions on the topics covered in the ED are addressed to the constituents. You can submit your comments on EFRAG's draft comment letter by clicking here, then open the relevant news item and click on the 'Comment publication' link at the end of the news item.
Feedback about the questions raised and comments on the EFRAG DCL are highly appreciated and should be received by 15 July 2024 to allow EFRAG to comply with the IASB's deadline of the comment period.
Publications open for comments
-
13/06/2024 - EFRAG issues draft comment letter on the IASB ED Contracts for Renewable Electricity
EFRAG has published its draft comment letter ('DCL') on the IASB's Exposure Draft IASB/ED/2024/3 Contracts for Renewable Electricity, Proposed amendments to IFRS 9 and IFRS 7 (the 'ED') and seeks constituents' views on the IASB proposals.
Comments on the EFRAG DCL can be submitted by 15 July 2024.
Documents
Project news
-
18/06/2024 - EFRAG joins ASCG and AFRAC for German Outreach Event on IASB ED Contracts for Renewable Electricity
On 4 July 2024, the German Standard Setter (ASCG) together with the Austrian Standard Setter (AFRAC) and EFRAG, in cooperation with the IASB, will discuss the IASB's Exposure Draft ED/2024/3 Contracts for Renewable Electricity during an online outreach event.
The event will be held virtually and in German. Selected content may be presented in English.
If you would like to participate, please register by sending an email to rodriguez@drsc.de before 27 June 2024.
