Your accounting policy may now need to understand how your renewable-energy contract actually works.
MCA’s latest Ind AS amendments bring nature-dependent electricity contracts into sharper accounting focus, alongside changes relating to contingent features and electronic payment settlement. The amendments apply for annual reporting periods beginning on or after 1 April 2026.
For finance teams, the interesting part is not simply the amended wording. It is what happens when the accounting team picks up a contract that was negotiated by procurement, reviewed by legal and priced by the energy team.
Take a renewable power purchase agreement. The accounting question may depend on details such as: How much electricity must be purchased? What happens when the plant generates more or less than expected? Can excess power be sold? How is the price determined? What rights does the buyer actually have over the electricity being generated?
Those may sound like commercial questions. Under Ind AS, they can become accounting questions. And that changes the review process.
Reading the standard in isolation may not be enough. The finance team may need to understand the actual economics and contractual mechanics before deciding the accounting treatment.
That is becoming increasingly common in areas where business models are changing faster than accounting teams are used to.
A contract can look straightforward commercially and still create a surprisingly complicated accounting conclusion.
The question is no longer just: “What does Ind AS say?” It is: “What does this contract actually do?”
