Regulatory reporting on profit and loss: institutions will have option to report under IAS 1 or IFRS 18

15 October 2026

• New IFRS 18 accounting standard takes effect on 1 January 2027
• Amended EBA ITS incorporating IFRS 18 expected to apply from end-September 2027
• During transitional period institutions can choose either IAS 1 or IFRS 18 to reduce operational burden in line with the EBA Opinion

The new accounting standard IFRS 18, concerning the presentation of profit and loss items, will come into effect on 1 January 2027, while the EBA’s amended implementing technical standards (ITS)^[1] incorporating IFRS 18 are expected to apply only from the September 2027 reference period.

In line with the European Banking Authority (EBA) Opinion published on 8 July 2026, institutions will have the option to report regulatory templates under either the previous (IAS 1) or the new (IFRS 18) accounting standard from January 2027 until the amended ITS begin to apply.^[2] This is aimed at alleviating the operational burden on institutions of maintaining two different profit and loss formats during the transition period, in line with the principles of the ECB’s reform agenda: Streamlining supervision, safeguarding resilience.

More specifically, significant institutions within the scope of the EBA’s ITS will be able to use IFRS 18‑aligned FINREP templates as published by the EBA in the technical package for version 4.4 (Phase 1) on a voluntary basis. The same flexibility will also apply to significant institutions subject to the ECB FINREP Regulation^[3], which will be amended to reflect changes introduced by the new standard. In the meantime, institutions subject to the ECB FINREP Regulation may refer to the above-mentioned EBA Opinion, together with Annex A or Annex B as applicable, for further guidance.

This option is applicable to less significant institutions only insofar as national competent authorities (NCAs) permit institutions within their jurisdiction to choose between IAS 1 and IFRS 18.

Information regarding the chosen option will be collected from institutions by their NCAs.

For media queries, please contact Benoit Deeg tel.: +49 172 1683704.

Annex A – Simplified and oversimplified ECB FINREP reporting frameworks

The rest of the templates listed in Annex I and Annex II are not affected by this option.

Annex B – Data points listed in Annex IV and Annex V of the ECB FINREP reporting framework

The data points listed in template F02 of Annex IV and Annex V of the ECB FINREP framework are replaced by the data points listed in worksheet “2.1 (Annex IV) DP 2027” and worksheet “2.1 (Annex V) DP 2027”, respectively, in the templates file.

The rest of the data points listed in Annex IV and Annex V are not affected by this option.