EBA smooths the path to IFRS 18 with interim FINREP guidance
The European Banking Authority (EBA) has issued an Opinion on how banks can report profit or loss information during the transition to IFRS 18, sparing them the burden of maintaining two different formats at once.
IFRS 18, endorsed in the EU in February 2026, replaces IAS 1 and introduces a new structure for the statement of profit or loss. Therein lies a timing headache: institutions will apply IFRS 18 in their public financial statements from 1 January 2027, but the amended Implementing Technical Standards (ITS) incorporating the new standard into supervisory financial reporting (FINREP) are only expected to apply from the end of September 2027.
To bridge the gap, the EBA pragmatically advises national authorities to allow banks to voluntarily use IFRS 18-aligned FINREP templates during the interim period. The templates were developed under the draft amended ITS on FINREP and reflect feedback from the public consultation that closed in May.
The revised templates, data point model (DPM), validation rules and XBRL taxonomy will be included in Phase 1 of the version 4.4 technical package, expected by September 2026 at the latest.
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