Own use

IFRS 9 - fair value accounting - exemption.

IFRS 9 generally requires certain contracts to be accounted for as derivatives, including fair valuation through profit or loss.

IFRS 9 exempts "own use" contracts from this requirement.

Own use means that the related contract is related to a non-financial item bought or sold by the reporting entity, within the reasonably expected usage of the entity.

See also

• Contracts referencing nature-dependent electricity
• Derivative
• Fair Value Adjustment
• Financial instrument
• FVTPL
• Hedge accounting
• IAS 32
• IAS 39
• IFRS 9
• IFRS 15
• International Accounting Standards Board (IASB)
• Net settlement
• Power purchase agreement (PPA)
• Reporting entity
• Swap
• Virtual power purchase agreement (VPPA)

Other resource

• Own use exemption under IFRS Accounting Standards - Objective, scope, and practical implications for power purchase agreements (PPAs) - KPMG - March 2024