The European Banking Authority has published an opinion to support institutions in reporting profit or loss during the transition to IFRS 18, aligning supervisory reporting with new accounting standards.
The European Banking Authority (EBA) has issued an opinion providing guidance on reporting profit or loss during the period between the initial application of IFRS 18 and the implementation of the amended FINREP technical standards, which are currently under consultation.
IFRS 18, endorsed in the EU in February 2026, introduces a new profit or loss statement structure, replacing IAS 1. Institutions will apply IFRS 18 in their public financial statements from 1 January 2027, while the amended ITS on FINREP are expected to apply from the end of September 2027.
To bridge this timing gap, the EBA recommends that competent authorities allow institutions to voluntarily use IFRS 18‑aligned FINREP templates during the interim period. These templates, developed during the public consultation ending on 10 May 2026, aim to maintain consistency between supervisory reporting and IFRS requirements and facilitate efficient implementation.
The revised FINREP templates reflecting IFRS 18 will be included in the supervisory reporting package version 4.4 (Phase 1), which will specify the Data Point Model, validation rules, and XBRL Taxonomy. The final version is planned for publication in July or September 2026.
These templates will be incorporated into the final draft amended ITS on FINREP, which the EBA plans to submit to the European Commission by the end of 2026. Their mandatory application is expected from the end of September 2027. Once adopted, the templates will be integrated into the technical package for supervisory reporting version 4.4 (Phase 2).
This Opinion is issued under Article 29(1)(a) of Regulation (EU) No 1093/2010 and supports the EBA’s tasks of monitoring market developments, fostering a common supervisory culture, and facilitating cooperation among authorities.
IFRS 18 was endorsed through Commission Regulation (EU) 2026/338 of 13 February 2026 and applies to financial statements for periods beginning on or after 1 January 2027.
The EBA has developed draft ITS amending Commission Implementing Regulation (EU) 2024/3117, including IFRS 18 implementation in FINREP. The public consultation on these amendments ended on 10 May 2026, with further consultation open until 10 July 2026.
