October 2025
Hi,
Here are your articles on accounting and sustainability reporting updates for the month.
For further enquiries, please contact us at my_cmaas@pwc.com.
Accounting for contracts referencing nature-dependent electricity
It is increasingly common for companies to enter into nature-dependent power purchase arrangements with a goal of reducing the carbon footprint from their energy usage. The types of arrangement and their contractual terms, as well as the market structure and laws and regulations, differ between jurisdictions.
The management needs a thorough understanding of the contractual terms, the market and the regulatory landscape, as well as the requirements in the Malaysian Financial Reporting Standards, to determine the proper accounting treatment for these arrangements. Read our Insights as a roadmap to navigate this challenging area of accounting.
PwC IFRS Talks: September 2025 IFRIC IC Update
Listen to PwC Podcast for an overview of the topics discussed at the September 2025 IFRS Interpretations Committee (IFRIC), particularly on the following tentative agenda decisions:
- Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability - discusses how foreign exchange differences on intragroup monetary assets and liabilities are classified under MFRS 18. (Open for comments to IFRIC until 25 November 2025 and MASB until 10 November 2025)
- Economic Benefits from Use of a Battery under an Offtake Arrangement looks at whether an electricity retailer obtains substantially all the economic benefits from the use of a battery in an offtake arrangement. (Open for comments to IFRIC until 25 November 2025 and MASB until 10 November 2025)
Illustrative sustainability reports based on the IFRS Sustainability Disclosure Standards for plantation and construction sectors
The Advisory Committee on Sustainability Reporting (ACSR) has recently issued 2 Illustrative Sustainability Reports (ISRs) based on the IFRS Sustainability Disclosure Standards, to support sustainability disclosures under the National Sustainability Reporting Framework (NSRF). Their aim is to provide companies with illustrative references when applying the IFRS S1 ‘General Requirements for Disclosure of Sustainability-related Financial Information’ and IFRS S2 ‘Climate-related Disclosures’ requirements in their sustainability disclosures.
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