3.1 Adoption Statement - Contracts Referencing Nature-dependent Electricity

1The UK Endorsement Board is designated under regulation 2(1) of The International Accounting Standards (Delegation of Functions) (EU Exit) Regulations 2021 No. 609¹ (“the Delegating Regulations") for the purpose of enabling it to exercise functions of the Secretary of State under Chapter 3 of Part 2 of The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 No. 685² (“the Regulations").

2Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity ("the Amendments”) contain related amendments to IFRS 9 Financial Instruments and IFRS 7. These related amendments have been assessed by the UK Endorsement Board within a single overarching Endorsement Criteria Assessment. The Amendments also include an amendment to IFRS 19 Subsidiaries without Public Accountability: Disclosures, which will be considered for adoption at a future date as part of the UKEB's assessment work for the adoption of IFRS 19, as a whole. Accordingly, the amendments to IFRS 19 have not been considered as part of this adoption. If IFRS 19 is endorsed for use in the UK, the effective date will be set out in the relevant adoption statement.

3The UK Endorsement Board, in exercise of the powers conferred by regulation 6(1) of the Regulations, adopts the following amendments to international accounting standards published by the International Accounting Standards Board (IASB), for use within the United Kingdom:

Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 7 Financial Instruments: Disclosures) ("the Standard”)³.

4In accordance with regulation 7(1) of the Regulations, the UK Endorsement Board is of the view that:

1. the Standard is not contrary to either of the following principles—
   1. an undertaking's accounts must give a true and fair view of the undertaking's assets, liabilities, financial position and profit or loss;
   2. consolidated accounts must give a true and fair view of the assets, liabilities, financial position and profit or loss of the undertakings included in the accounts taken as a whole, so far as concerns members of the undertaking;
2. the use of the Standard is likely to be conducive to the long term public good in the United Kingdom; and
3. the Standard meets the criteria of understandability, relevance, reliability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management.

5In accordance with regulation 8 of the Regulations, the UK Endorsement Board is of the view that adequate consultation with persons representative of those with an interest in the quality and availability of accounts, including users and preparers of accounts, has been undertaken before the adoption decision.

6The adopted Standard referred to in paragraph 3 shall be applied at the same time as an entity applies the related amendments to IFRS 9 for contracts referencing nature-dependent electricity.

7The text of the Standard is set out in the annex to this statement.

Approval by the UK Endorsement Board

Adoption of Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 7 Financial Instruments: Disclosures)

Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity published by the IASB in December 2024 was approved for adoption by 13 members of the UK Endorsement Board.

23 July 2025

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