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AASB Standard  AASB 2025-1
               February 2025

Amendments to Australian Accounting Standards – Contracts Referencing Nature-dependent Electricity
[AASB 7 & AASB 9]

Obtaining a copy of this Accounting Standard
This Standard is available on the AASB Digital Standards Portal (standards.aasb.gov.au), which can also be accessed from aasb.gov.au.

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© Commonwealth of Australia 2025

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ISSN 1036-4803

Contents

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

from page
Objective 5
Application 5
Amendments to AASB 7 5
Amendments to AASB 9 7
COMMENCEMENT OF THE LEGISLATIVE INSTRUMENT 9

aVailable on the AASB website

IASB Illustrative Examples – Amendments
IASB Bases for Conclusions – Amendments

Australian Accounting Standard AASB 2025-1 Amendments to Australian Accounting Standards – Contracts Referencing Nature-dependent Electricity is set out on pages 5–9. All the paragraphs have equal authority.

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