Amendments to AASB 1060Amendments to AASB 1060

Amendments to AASB 1060

1. The heading above paragraph 120 is amended and a new sub-heading added, to read as follows:

Other Financial Instrument Issues11

Hedging disclosures

1. Paragraphs 122A–122C and a related heading are added as follows:

Contracts referencing nature-dependent electricity

122A Contracts referencing nature-dependent electricity are contracts that expose an entity to variability in the underlying amount of electricity because the source of electricity generation depends on uncontrollable natural conditions (for example, the weather). Contracts referencing nature-dependent electricity include both contracts to buy or sell nature-dependent electricity and financial instruments that reference such electricity. For contracts to buy nature-dependent electricity that are outside the scope of AASB 9 in accordance with paragraphs B2.7–B2.8 of AASB 9, an entity shall disclose in a single note in its financial statements:

information about contractual features that expose the entity to:
1.  variability in the underlying amount of electricity; and
2.  the risk that the entity would be required to buy electricity during a delivery interval in which the entity cannot use the electricity (see paragraph B2.7 of AASB 9);
qualitative information about how the entity assesses whether a contract might become onerous (see AASB 137 Provisions, Contingent Liabilities and Contingent Assets), including the assumptions the entity uses in making this assessment; and
qualitative information about the effects on the entity’s financial performance for the reporting period.

122B For the disclosures required by paragraph 122A, an entity is not required to provide comparative information for any reporting periods presented before the beginning of the annual reporting period in which the entity first applies those requirements.
122C In the reporting period in which an entity first applies AASB 2025-1 Amendments to Australian Accounting Standards – Contracts Referencing Nature-dependent Electricity, the entity is not required to disclose the quantitative information that would otherwise be required by paragraph 106(b).