The International Accounting Standards Board (IASB) has released a proposed update to the IFRS Accounting Taxonomy 2024 to incorporate the suggested disclosure requirements for renewable electricity contracts.
These contracts are designed to ensure the stability and availability of renewable energy sources. In May 2024, the IASB issued an Exposure Draft proposing amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures, aimed at ensuring that financial statements accurately reflect the impact of renewable electricity contracts on a company. The IASB plans to finalise these changes by the end of 2024, to allow companies to apply the new requirements as soon as they are ready.
The Proposed IFRS Taxonomy Update is aligned with these proposed amendments. To ensure it is integrated into the IFRS Accounting Taxonomy 2025, due for publication in March 2025, the IASB received approval from the Due Process Oversight Committee to release this update based on the Exposure Draft. This approach aims to prevent companies from needing to create custom elements to capture information under the new requirements in the first year of implementation.
However, the proposed amendments to IFRS 9 and IFRS 7 may evolve based on stakeholder feedback, and any changes will be reflected in the final IFRS Taxonomy Update.
