DPOC approves shortened comment period for proposed amendments to IFRS 9 and IFRS 7 related to power purchase agreements
21 Mar 2024
In an additional meeting today, the Due Process Oversight Committee (DPOC) discussed a possible shortened comment period for the IASB exposure draft on power purchase agreements expected to be published in May 2024.
During the meeting, the IASB explained its reasons for suggesting a shortened comment period:
- IASB added the project on power purchase agreements as an urgent project in July 2023, following requests from stakeholders for a timely solution of the issue. Following the development of a possible solution by the staff, the IASB then discussed the issue at all meetings from December 2023 to March 2024.
- To achieve its objective of providing a timely solution as asked for by stakeholders, the IASB expects to publish an exposure draft in May 2024 and is currently aiming to finalise the amendments in 2024.
- Throughout the project, the IASB did extensive outreach with stakeholders - "shared the sandbox" with them - so stakeholders know what is coming and will only need to comment on technical details.
- The IASB has clearly communicated on the status of the project and the progress made throughout the project.
- The proposed changes are narrow-scope amendments affecting particular requirements in IFRS 9 only.
- Implementing the proposed amendments would not be burdensome for preparers.
The DPOC followed the reasoning of the IASB and only asked a few clarifying questions. It finally agreed to a shortened comment period of 90 days.
Please click for the following additional information on the IFRS Foundation website:
- Agenda paper for the meeting explaining the IASB's rationale
- Recording of the DPOC meeting