UKEB adopts the Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature – dependent Electricity

The UKEB has today adopted for use in the UK the Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity issued by the IASB in December 2024. The Amendments:

• Introduce application guidance in relation to the “own-use” exception as set out in paragraph 2.4 of IFRS 9 for certain contracts to purchase nature-dependent electricity.
• Permit hedge accounting in certain circumstances where the hedging instrument is a contract referencing nature-dependent electricity.
• Introduce new disclosure requirements to provide information about the effects of contracts within the scope of the Amendments on an entity’s financial performance and cash flows.

The Amendments are effective for annual reporting periods beginning on or after 1 January 2026, with early application permitted.

The text of the UK-adopted international accounting standards for the Amendments can be found on our website.

For more information on the UKEB’s approach to this project visit our website.

We would like to thank all stakeholders who contributed to this project.