IFRB 2025/02 IASB issues Contracts Referencing Nature-dependent Electricity

The International Accounting Standards Board (IASB) issued Contracts Referencing Nature-dependent Electricity in December 2024. The amendments clarify the own-use requirements in IFRS 9 with respect to contracts referencing nature-dependent electricity (CRNEs). The amendments permit an entity to designate a variable nominal volume of electricity as a hedged item, facilitating application of hedge accounting to CRNEs.
The IFR Bulletin provides a background of the issues that led to the amendments, a summary of the amendments and comments on certain implications of the amendments.

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Source: BDO Global