Skip to main content

IFRS® Accounting Standards

Power Purchase Arrangements

Summary

Canadian entities are increasingly entering into long-term power purchase arrangements (PPAs) for the procurement of renewable energy. PPAs are part of entities’ commitment to mitigate the effects of climate change and to decarbonise their production processes and products. PPAs are affected by the structure of energy markets in the jurisdictions entities operate within. Changing market conditions give rise to application challenges and questions when applying the requirements in IFRS 9 Financial Instruments. These challenges can result in accounting outcomes that do not faithfully represent the economic substance of such contracts.

Staff Contact(s)

Prajesh Marwaha, CPA Principal, Accounting Standards

Phone number  +1 647 956 7335
Email address  [email protected]

Project Status

  • Information gathering

    The IASB added the Power Purchase Arrangements project to its work plan in July 2023

  • Approving project
  • Consulting stakeholders
  • Deliberating feedback
  • Final pronouncement
Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.