Preface

Standards amended by AASB 2025-1

This Standard makes amendments to AASB 7 Financial Instruments: Disclosures (August 2015) and AASB 9 Financial Instruments (December 2014).

These amendments arise from the issuance of International Financial Reporting Standard Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7) by the International Accounting Standards Board in December 2024.

Main features of this Standard

Main requirements

Nature-dependent electricity contracts help entities to secure their electricity supply from sources such as wind and solar power. The amount of electricity generated under these contracts can vary based on uncontrollable factors such as weather conditions.

This Standard amends AASB 7 and AASB 9 to allow entities to better reflect these contracts in the financial statements. The amendments:

1. clarify the application of the ‘own-use’ criteria to nature-dependent electricity contracts;
2. permit hedge accounting if these contracts are used as hedging instruments; and
3. add new disclosure requirements to enable users of financial statements to better understand the effect of these contracts on an entity’s financial performance and cash flows.

Application date

This Standard applies to annual periods beginning on or after 1 January 2026. Earlier application is permitted.