Due Process Compliance Statement - Power Purchase Agreements

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Publication date
20 September 2024
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PDF, 142.1 KB
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The International Accounting Standards Board (IASB) published IASB/ED/2024/3 Contracts for Renewable Electricity: Proposed Amendments to IFRS 9 and IFRS 7' (the Amendments) on 8 May 2024. The IASB comment period ends on 7 August 2024.

Influencing process

Project preparation

Step Mandatory / optional [^2] Metrics or evidence UKEB Secretariat comments
Added to UKEB technical work plan [Due Process Handbook (Handbook) 4.30] Mandatory Project included in the UKEB published technical work plan Complete: The Amendments were included in the UKEB technical work plan published in October 2023.
Project Initiation Plan (PIP) [Handbook 5.4 to 5.8, A1 to A2 and A12 to A14] Mandatory PIP draft with project outline (background, scope, project objective) and approach for influencing (key milestones and timing) Complete: The Secretariat included mandatory milestones for the project and considered, as appropriate, other milestones and activities. The PIP was approved at the 26 April 2024 Board meeting.
Mandatory Outreach plan for stakeholders and communication approach outlined Complete: The PIP (referred to above) included the outreach plan and approach.
Mandatory Resources allocated Complete: One Project Director (0.8 FTE), and ad-hoc project manager support with technical support and oversight from a Senior Project Director were allocated to the project.
Project Initiation Plan (PIP) [Handbook 5.4 to 5.8, A1 to A2 and A12 to A14] (continued) Mandatory Assessment of whether to set up an ad-hoc advisory group Complete: Taking a proportionate approach, an ad-hoc advisory group was not considered necessary due to the narrow-scope nature of the Amendments.
Mandatory Assessment of whether PIP required updating Complete: We monitored this throughout the project, the nature and scope of which remained as proposed in the original PIP.
Mandatory UKEB Board public meeting held to approve PIP Complete: The PIP was approved at the 26 April 2024 Board meeting.
Education sessions [Handbook 4.10] Optional Board provided with education sessions Complete: The Board was provided with an education session on the proposed amendments at its 26 April 2024 private Board meeting.

Desk-based research

Step Mandatory / optional [^2] Metrics or evidence UKEB Secretariat comments
Desk-based research [Handbook 5.9 and A3] Optional Review of relevant documentation
Complete: the Secretariat has reviewed:
  • The IASB's work on the Amendments (staff papers, ED)
  • Dissenting opinions in the ED
  • The Basis for Conclusions to the ED
  • Draft views of other standard-setters
  • Accounting manuals and press releases for guidance and illustrative examples

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Outreach

Step Mandatory / optional [^2] Metrics or evidence UKEB Secretariat comments
Outreach activities [Handbook 5.10 to 5.12 and A4 to A8] Mandatory Evidence of consultation Complete: Due to the narrow-scope nature of the Amendments, consultation activities were focused on consultation with advisory groups, including the RRA TAG, and engaging with several specialists in this field. The UKEB received 3 comment letters. The comment letters received were published on the UKEB website.

Draft Comment Letter (DCL)

Step Mandatory / optional [^2] Metrics or evidence UKEB Secretariat comments
DCL published for comment (mandatory unless impracticable) [Handbook paragraphs 5.13 to 5.17 and A4(d)] Mandatory Comment period set for responses to DCL Complete: The DCL was published for consultation for 44 days on 5 June 2024 (comment period deadline: 19 July 2024).
Mandatory Review and approval at a UKEB public meeting Complete: The DCL was reviewed and approved at the Board meeting on 24 May 2024, subject to revision after the meeting. The revision was approved by the Chair.
Mandatory DCL published on website for public consultation Complete: The DCL was published on the UKEB website for public consultation on 5 June 2024 (comment period deadline: 19 July 2024).

Project finalisation and project closure

Step Mandatory / optional [^2] Metrics or evidence UKEB Secretariat comments
Final Comment Letter (FCL) [Handbook paragraph 5.18 and A4(d)] Mandatory Public responses to DCL considered and published on website Complete: The UKEB received 3 comment letters which were published on the UKEB website. All responses were assessed, reflected as appropriate in the FCL and summarised in the Feedback Statement.
Mandatory FCL approved by the UKEB in public meeting Complete: A draft of the FCL was presented for approval to the Board at its 2 August 2024 ad-hoc public meeting. The Board approved the FCL subject to suggested amendments.
Mandatory FCL submitted to the IASB and posted on UKEB website The FCL was submitted to the IASB and posted on the UKEB website on 6 August 2024.
Feedback Statement [Handbook 5.19 to 5.22 and A9 to A11] Mandatory Feedback Statement approved for publication by the UKEB in a public meeting Complete: A draft of the Feedback Statement was presented for approval to the Board at its 2 August 2024 ad-hoc public meeting. The Board approved the draft Feedback Statement, subject to editorial changes.
Mandatory Feedback Statement published on the UKEB website Complete: The final Feedback Statement was published on the UKEB website on 6 August 2024.
Due Process Compliance Statement (DPCS) Mandatory DPCS approved by the UKEB in public meeting Complete: A draft DPCS was presented for approval to the Board at its 2 August 2024 ad-hoc public meeting. A final DPCS was presented for noting at the Board's 19 September 2024 meeting.
[Handbook 5.23 to 5.26 and A12 to A14] Mandatory DPCS published on the UKEB website Complete: The final DPCS was published on the UKEB website after the 19 September 2024 Board meeting.

Ongoing communications

Step Mandatory / optional [^2] Metrics or evidence UKEB Secretariat comments
Public Board meetings [Handbook 4.10] Mandatory UKEB public meetings held to discuss technical project Complete: The Board received updates on the project at its April, September and December meetings in 2023 and at its January, February, March and April meetings in 2024. The Board approved the PIP at its meeting on 26 April 2024, the DCL at its meeting on 24 May 2024 and the FCL at its ad-hoc meeting on 2 August 2024.
Secretariat papers [Handbook 4.20] Mandatory Board meeting papers posted and publicly available usually no later than 5 working days before a Board meeting. Complete: The UKEB's meeting papers were published on the UKEB website 5 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.
Subscriber Alerts [Handbook 4.24] Optional Evidence that subscriber alerts have occurred Complete: Subscribers were alerted via email 5 days before each Board meeting, with links to the agenda, papers and the option to dial in to observe the discussion.
News Alerts [Handbook 4.24] Optional News Alert to announce publication of key documents Complete: News Alerts were published on 5 June 2024, 21 June 2024, 8 July 2024 and 11 July 2024 calling for comments. A News Alert was published on 6 August 2024 alerting stakeholders to the publication of the FCL and Feedback Statement. A link to the FCL was sent out to the UKEB advisory groups.

Conclusion

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

[^1] The ED is available on the IASB website. [^2] In accordance with the Due Process Handbook.