The Pexapark Podcast Navigating the New IFRS Reality for PPA with Francisco Jimenez of EY
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Feb 26, 2026 Francesco Jimenez, Partner at EY specializing in IFRS for financial instruments and PPA valuation. He discusses the January 2026 IFRS changes and which PPAs may be treated as derivatives. He explains own-use exemptions for nature-dependent assets, how fair value and hedge accounting affect reported volatility, and practical steps companies should take to prepare.
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How Francesco Became A PPA Accounting Specialist
- Francesco described his path from aspiring investment banker to PPA accounting specialist after moving to Ireland and working on gross-pool markets like Ireland and Greece.
- He learned PPA valuations firsthand and ended up covering most of Europe for accounting and valuation work.
Nature Dependent PPAs Regain Own-Use Protection
- Own-use exemption now applies for nature-dependent physical PPAs (solar, wind) if over a year you consume net production, even if you trade intraday.
- This removes the prior barrier where selling occasional excess output forced derivative accounting.
Derivative Classification Drives Fair Value Volatility
- PPAs that are financially settled or lack own-use treatment must be fair-valued as derivatives, creating P&L volatility unless hedge accounting is applied.
- Sellers can now achieve hedge accounting to record movements in OCI, which wasn't permitted before.