IFRS 18 for Energy, Utilities, Oil & Gas and Mining | Part 5 of 8

What happens when hydro plants, mines, pipelines, project debt, decommissioning obligations, commodity hedges and enormous depreciation charges meet IFRS 18? In Part 5 of the IFRS 18 in Uganda series, we examine the practical implementation of IFRS 18 for: • electricity generation, transmission and distribution • renewable energy and utilities • oil and gas — upstream, midstream and downstream • pipelines and energy infrastructure • mining, quarrying and mineral processing • project-financed energy and extractive operations • joint ventures, associates and group structures The discussion is Uganda-led but designed for finance professionals and IFRS implementers globally. A central theme is that being capital-intensive does not automatically make productive assets “investing” under IFRS 18. A power plant, mine, pipeline or production facility normally works together with people, contracts, inventories and other resources to generate operating output. We also explore: • why a heavily debt-financed project is not automatically a financing business • project debt and the financing category • decommissioning and restoration obligations • IAS 23 borrowing costs and capitalisation • IFRIC 1 and decommissioning liability movements • IFRS 6 and extractive-industry considerations • FX and derivatives by source item or managed risk • equity-accounted associates and joint ventures • treasury returns and financial assets • EBITDA, EBITDAX and management-defined performance measures • IAS 7 cash-flow implications • reporting-entity and consolidation differences • the 2026 comparative and IFRS 18 shadow close The worked example begins with a practical question: Why can operating profit fall by UGX 50 billion even when profit before tax and total profit do not change? The answer demonstrates one of the most important IFRS 18 implementation lessons: the performance map can change materially even when the underlying economics do not. IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027 and is applied retrospectively. For calendar-year reporters, 2026 therefore becomes the comparative year. This video is Part 5 of 8 in the series: IFRS 18 in Uganda: From Standard to Implementation Although the series is anchored in Uganda, the technical issues are relevant to energy, utility, oil & gas and mining companies across Africa, the Middle East, Europe, Asia and other IFRS jurisdictions. Presented by Rogers Nsubuga, ACCA, CPA(U) Nsuvia Institute of Finance Subscribe for the remaining sector-specific IFRS 18 implementation videos and practical finance content. This discussion is educational and does not constitute accounting, legal, tax, investment or regulatory advice. Entity conclusions require analysis of the entity’s own contracts, legal structures, policies, systems and regulatory environment. #IFRS18 #EnergyAccounting #OilAndGas #MiningAccounting #Utilities #FinancialReporting #CFO