In July 2023, the International Accounting Standards Board (IASB) decided to add a project to its work plan to research whether feasible narrow-scope amendments to IFRS 9 could be made for power purchase agreements.
At its June 2023 meeting the Committee recommended that the IASB undertake a narrow-scope standard-setting project to clarify how entities apply the own-use exception in IFRS 9 to physical PPAs for the delivery of renewable energy. The IASB discussed whether to add such a project to its work plan and, if so, what the scope and priority of that project could be. The IASB also considered stakeholders’ concerns about the accounting for virtual PPAs.
The IASB tentatively decided to add a project to the work plan to research whether narrow-scope amendments could be made to IFRS 9 to better reflect how financial statements are affected by PPAs in which the underlying non-financial item:
The IASB’s research will focus on:
Thirteen of 14 IASB members agreed with these decisions.