The International Accounting Standards Board (IASB) has today published a proposed update to the IFRS Accounting Taxonomy 2024 to reflect the proposed disclosure requirements for renewable electricity contracts.
Renewable electricity contracts aim to secure the stability of and access to renewable electricity sources. In May 2024, the IASB published an Exposure Draft with proposed amendments to ensure that financial statements faithfully reflect the effects that renewable electricity contracts have on a company. These proposed amendments relate to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. The IASB aims to finalise any changes in these Standards by the end of 2024 and is considering making the new requirements available for companies to apply as soon as possible after they are finalised.
The IASB’s Proposed IFRS Taxonomy Update is based on these proposed amendments. To ensure timely integration with the IFRS Accounting Taxonomy 2025, scheduled for publication in March 2025, the IASB obtained permission from the Due Process Oversight Committee to publish this Proposed IFRS Taxonomy Update based on the proposals in the Exposure Draft. This approach means that, in the first year of implementation, companies would not have to create custom elements to capture information disclosed under the new requirements.
The proposed amendments to IFRS 9 and IFRS 7 might change in response to stakeholder feedback and the proposals in this Proposed IFRS Taxonomy Update would change to reflect the amendments issued.
Read and comment on the proposed update
The IASB is inviting feedback on the proposed update. The deadline for submitting comments is 14 October 2024.
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IFRS Accounting consultative documents
IFRS Accounting Standards development
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IFRS 7 Financial Instruments Disclosures
IFRS 9 Financial Instruments
