The European Banking Authority (EBA) has published today an Opinion providing guidance on how institutions can report profit or loss information during the interim period between the first application date of IFRS 18 and the first application date of the amending Implementing Technical Standards (ITS) on supervisory financial reporting (FINREP), which are currently under consultation. The Opinion aims to support institutions by avoiding the operational burden of maintaining two different profit or loss formats during the transition period. It is also consistent with the EBA’s broader efforts to simplify and streamline the EU supervisory reporting framework.
IFRS 18, which was endorsed in the EU in February 2026, introduces a new structure for the statement of profit or loss and replaces IAS 1. While institutions will apply IFRS 18 in their public financial statements from 1 January 2027, the amended ITS on FINREP incorporating IFRS 18 are expected to apply only from the end of September 2027.
To bridge this timing gap, the EBA advises competent authorities to allow institutions to use a set of IFRS 18‑aligned FINREP templates voluntarily during the interim period. These templates have been developed as part of the draft amended ITS on FINREP and reflect the feedback received during the public consultation that ended on 10 May 2026.
Allowing institutions to adopt these templates ahead of their mandatory application will help maintain consistency between supervisory financial reporting and IFRS requirements, while supporting an efficient implementation of the new accounting standard.
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