EBA issues guidance on IFRS 18 implementation in supervisory reporting

The European Banking Authority (EBA) has published 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 also aligns with the EBA’s broader efforts to simplify and streamline the EU supervisory reporting framework.

IFRS 18, endorsed in the EU in February 2026, introduces a new structure for the statement of profit or loss and replaces IAS 1. Institutions will apply IFRS 18 in their public financial statements from 1 January 2027, while the amended ITS on FINREP incorporating IFRS 18 are expected to apply from the end of September 2027.

To bridge this timing gap, the EBA advises competent authorities to allow institutions to voluntarily use IFRS 18‑aligned FINREP templates during the interim period. These templates, developed as part of the draft amended ITS on FINREP, reflect feedback from the public consultation ending on 10 May 2026.

Allowing early adoption of these templates will help maintain consistency between supervisory reporting and IFRS requirements and support efficient implementation of the new standard.

Next steps include the inclusion of the revised IFRS 18‑reflecting FINREP templates in the technical package for supervisory reporting version 4.4 (Phase 1). The final version of this package is planned for publication in July 2026, or September 2026 at the latest. 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 expected from the end of September 2027.

Once adopted, the amended ITS will enter into force, and 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 draft ITS amendments, including IFRS 18 in FINREP, were open for public consultation until 10 May 2026, with remaining amendments open until 10 July 2026.