Due Process Compliance Statement - Contracts Referencing Nature-dependent Electricity

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Title of the Amendments	Issue dates
Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity (the Amendments).	- Exposure Draft Contracts for Renewable Electricity issued 8 May 2024 (the ED). - Final Amendments issued 18 December 2024. Effective for annual reporting periods beginning on or after 1 January 2026. Earlier application permitted.

Project preparation

Step	Mandatory / optional¹	Metrics or evidence	UKEB Secretariat comments
Added to the UKEB technical work plan [Due Process Handbook (Handbook) 4.30]	Mandatory	Project is included in the UKEB published technical work plan	Complete: the Amendments were included in the UKEB published technical work plan dated 12 December 2024.
Project Initiation Plan (PIP) [Handbook 6.12 to 6.16, A1 to A2 and A12 to A14]	Mandatory	PIP, including an outreach plan for stakeholders, resource allocation and an assessment of whether to set up an ad hoc advisory group, approved at a UKEB Board public meeting.	Complete: The PIP included the purpose, background, proposed outreach activities, milestones and timelines for the project. The resource allocated was 0.8 of a Project Director, along with appropriate support from a Project Manager and from the UKEB Economics team and oversight of one Senior Project Director. Taking a proportionate approach, an ad hoc advisory group was considered unnecessary. The PIP was approved at the 12 December 2024 Board meeting and published on the UKEB webpage.
Education sessions [Handbook 4.10]	Optional	Board provided with Education sessions	Complete: The Secretariat monitored this throughout the project, the nature and scope of which remained as proposed in the original PIP. Complete: The Board was provided with an education session on 25 February 2025 (private session). The Board also had the opportunity for a technical discussion at the 30 January 2025 Board meeting. To facilitate this discussion, the Board were provided technical papers with an overview of the Amendments and significant changes from the IASB’s Exposure Draft Contracts for Renewable Electricity (published May 2024).

Desk-based research

Step	Mandatory / optional²	Metrics or evidence	UKEB Secretariat comments
Desk-based research [Handbook 6.17 and A3]	Optional	Review of relevant documentation	Complete: the Secretariat has reviewed relevant documentation, including: - The IASB's work on the Amendments (including staff papers, the ED, the Amendments); - the Dissenting Opinion on the Amendments; - The Bases for Conclusions for the Amendments; - Previous work done by the UKEB while influencing the IASB's project on Power Purchase Agreements, including minutes of meetings with UK stakeholders and subject matter experts and information from the financial statements of UK listed IFRS reporters; - Energy sector reports³; and - The European Financial Reporting Advisory Group (EFRAG) endorsement advice to the European Commission.

Outreach

Step	Mandatory / optional⁴	Metrics or evidence	UKEB Secretariat comments
Consult with a representative range of stakeholders	Mandatory	Evidence of consultation	Complete: As described in the PIP, consultation activities were focused on consultation with UKEB advisory groups

Project finalisation and project closure

Step	Mandatory / optional⁵	Metrics or evidence	UKEB Secretariat comments
prior to adoption [Handbook 6.18 to 6.22 and A4 to A8]	Mandatory		and public consultation on the DECA (see table at paragraph A11 of the PIP). The Secretariat also convened a roundtable with UK stakeholders and subject matter experts.
DECA [Handbook 6.23 to 6.29 and A4(d)]	Mandatory	DECA reviewed and approved at a UKEB public meeting and published on the UKEB website for public consultation for a period of more than 90 days.	Complete: The DECA was reviewed and approved for publication (subject to minor changes) at the February 2025 Board meeting. The DECA was published on the UKEB project page for consultation on 10 March 2025, for a 91-day consultation period, ending 9 June 2025. A News Alert (published on 10 March 2025) and a LinkedIn post (published on 10 March 2025) were issued to publicise the DECA and solicit stakeholder feedback.
	Mandatory	Public responses to DECA assessed and published on website	Complete: The UKEB received five formal written responses to the DECA consultation, which were published on the UKEB project webpage. A summary of the feedback received was presented at the June 2025 UKEB meeting. Minor changes, agreed with the Board, were made to the draft ECA. Feedback received was summarised in the Feedback Statement.
Final Endorsement Criteria Assessment	Mandatory	Final ECA approved by the UKEB in a public meeting and published on the website	Complete: The Board approved the ECA at its 15 July 2025 public meeting. The final ECA was published on the UKEB website. A News Alert and a LinkedIn post were published on 24 July 2025 to alert stakeholders to the endorsement and adoption of the Amendments.
Feedback Statement [Handbook 6.33 to 6.36 and A9 to A11]	Mandatory	Feedback Statement approved by the UKEB in a public meeting and published on the UKEB website	Complete: The Board approved the feedback statement at its 15 July 2025 public meeting. The final Feedback Statement was published on the UKEB website on 24 July 2025.
Adoption Statement [Handbook 6.40 to 6.48]	Mandatory	Adoption Statement approved by the UKEB in public meeting and published on the UKEB website	Complete: The Adoption Statements for the Amendments were approved by the Board at its 15 July 2025 public meeting. The final Adoption Statements for the Amendments were published on 24 July 2025.
Voting on adoption of the Amendments [Handbook 6.42 to 6.48]	Mandatory	Tentative vote	Complete: A tentative vote took place at the 15 July 2025 Board meeting, based on the discussion of the adoption package, which included the final draft ECA, draft Feedback Statement, draft Due Process Compliance Statement, draft Adoption Statements for the Amendments and the text of the UK-adopted international accounting standard Amendments to IFRS 9 and IFRS 7–Contracts Referencing Nature-dependent Electricity. The vote was indicative only. One Board member tentatively voted against the Amendments to IFRS 9. Complete: The Adoption Statement and voting forms were sent to the Board for voting (accompanied by the text of the Amendments to be adopted) on 18 July 2025 (written forms due by 25 July 2025). The vote was formalised when the final written voting forms were received. Complete: The announcement of the adoption of the Amendments was published on the UKEB website on 24 July 2025. One Board member voted against the Amendments to IFRS 9. The dissenting opinion was published on the UKEB website as part of the Adoption package.
Due Process Compliance Statement (DPCS) [Handbook 6.37 to 6.39 and A12 to A14]	Mandatory	DPCS approved by the UKEB in public meeting and published on the UKEB website	Complete: A draft DPCS was presented for approval to the Board at its 15 July 2025 public meeting. A final DPCS was tabled for noting at the Board's 25 September 2025 meeting. The final DPCS was published on the UKEB website after the 25 September 2025 Board meeting.

Ongoing communications

Step	Mandatory / optional	Metrics or evidence	UKEB Secretariat comments
Public Board meetings [Handbook 4.10]	Mandatory	UKEB public meetings held to discuss technical project	Complete: The Board approved: - the PIP at its meeting on 12 December 2024, - the DECA at its meeting on 27 February 2025; and - the draft Adoption Package at its meeting on 15 July 2025. A paper summarising feedback received during the DECA consultation period was discussed by the Board at its meeting on 26 June 2025.
Secretariat papers [Handbook 4.20]	Mandatory	Board meeting papers posted and publicly available usually no later than five working days before a Board meeting.	Complete: The UKEB's meeting papers were published on the UKEB website five working days before the public meetings. Meeting minutes and recordings were made publicly available via the UKEB website.
Project webpage [Handbook 4.25(b)]	Mandatory	Project webpage contains a project description with up-to-date information on the project.	Complete: The project webpage has been updated regularly on a timely basis. Optional News Alerts and LinkedIn posts were issued throughout the project, as appropriate, for the publication of the DECA, the Final ECA and Feedback Statement as detailed in the relevant sections above.

Conclusion

This project complies with the applicable due process steps, as set out in the Handbook (published December 2022).

Footnotes

In accordance with the Due Process Handbook. ↩
In accordance with the Due Process Handbook. ↩
For example, Aurora Energy Research (2022) and UK Energy Trends, July to September 2024. ↩
In accordance with the Due Process Handbook. ↩
In accordance with the Due Process Handbook. ↩

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