​The EBA issues Opinion on the implementation of IFRS 18 in supervisory financial reporting to support consistency with IFRS requirements

​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.

​Next steps

​The revised FINREP templates reflecting IFRS 18 will be included in the technical package for supervisory reporting version 4.4. (Phase 1). This package sets out the Data Point Model (DPM), validation rules and XBRL Taxonomy required for institutions choosing to submit information using these templates. The final version of the package is planned for publication in July 2026, or at the latest by September 2026. 

​These templates will be part of the final draft amended ITS on FINREP, which the EBA expects to submit to the European Commission by the end of 2026. Their mandatory application is currently expected from the end of September 2027.

​Once the amended ITS are adopted and enter into force, the templates will be integrated into the technical package for supervisory reporting version 4.4 (Phase 2).

​Legal basis and background

​This Opinion is issued under Article 29(1)(a) of Regulation (EU) No 1093/2010. It supports the EBA’s tasks of monitoring and assessing market developments, contributing a common supervisory culture and facilitating cooperation and information exchange among competent authorities.

​IFRS 18 was endorsed in the European Union through Commission Regulation (EU) 2026/338 of 13 February 2026 and applies to institutions’ financial statements for accounting periods beginning on or after 1 January 2027.

​To maintain alignment between supervisory reporting requirements and IFRS requirements, the EBA has developed draft Implementing Technical Standards (ITS) amending Commission Implementing Regulation (EU) 2024/3117 including, among others, the implementation of IFRS 18 in FINREP. 

​The draft ITS FINREP templates and related instructions mainly affected by the IFRS 18 implementation were subject to public consultation until 10 May 2026. The consultation on the remaining ITS amendments is open until 10 July 2026.

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