Document ID: chunk:federal_register_of_legislation:F2025L00102:body:0:p2
Version: federal_register_of_legislation:F2025L00102
Segment Type: other
Provision Reference: 
Character Range: 3170–6218

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.

Accounting Standard AASB 2025-1
The Australian Accounting Standards Board makes Accounting Standard AASB 2025-1 Amendments to Australian Accounting Standards – Contracts Referencing Nature-dependent Electricity under section 334 of the Corporations Act 2001.
Keith Kendall
Dated 3 February 2025 Chair – AASB

Accounting Standard AASB 2025-1
Amendments to Australian Accounting Standards – Contracts Referencing Nature-dependent Electricity

Objective
This Standard amends AASB 7 Financial Instruments: Disclosures (August 2015) and AASB 9 Financial Instruments (December 2014) as a consequence of 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.

Application
The amendments set out in this Standard apply to entities and financial statements in accordance with the application of AASB 7 and AASB 9 set out in AASB 1057 Application of Australian Accounting Standards.
This Standard applies to annual reporting periods beginning on or after 1 January 2026. Earlier application is permitted.
This Standard uses underlining, striking out and other typographical material to identify some of the amendments to AASB 7 and AASB 9 in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.

Amendments to AASB 7
Paragraphs 5B–5D, 30A–30C, 44OO–44PP and the subheading before paragraph 30A are added. Paragraph 5 is not amended but is included for ease of reference. New text is underlined.

Scope
 ...
5 This Standard applies to contracts to buy or sell a non-financial item that are within the scope of AASB 9.
 ...
5B Paragraph 30A applies only to contracts to buy nature-dependent electricity that satisfy the requirements in paragraph 2.3A of AASB 9 and are outside the scope of that Standard in accordance with paragraphs B2.7–B2.8 of AASB 9.
5C Paragraph 30B applies only to contracts that satisfy the requirements in paragraph 2.3A of AASB 9 and have been designated in a cash flow hedging relationship in accordance with paragraph 6.10.1 of AASB 9.
5D Paragraph 30C applies only to contracts that satisfy the requirements in paragraph 2.3A of AASB 9 and have been entered into with regards to an entity's electricity purchases. These