European Banking Authority issues Opinion backing voluntary IFRS 18 aligned FINREP templates during transition

The European Banking Authority has published an Opinion on how institutions should report profit or loss information in supervisory financial reporting during the gap between the start of IFRS 18 and the later application of amended FINREP rules. It advises competent authorities to allow institutions to use IFRS 18-aligned FINREP templates on a voluntary basis during that interim period, so firms do not have to maintain two different profit or loss formats and supervisory reporting remains aligned with IFRS requirements. IFRS 18, endorsed in the European Union in February 2026, replaces IAS 1 and introduces a new structure for the statement of profit or loss. Institutions will apply IFRS 18 in public financial statements from 1 January 2027, while the amended Implementing Technical Standards on FINREP that incorporate IFRS 18 are expected to apply only from the end of September 2027. The interim templates were developed as part of the draft amended ITS on FINREP and reflect feedback received during the public consultation that ended on 10 May 2026. The revised FINREP templates will be included in supervisory reporting technical package version 4.4 Phase 1, covering the Data Point Model, validation rules and XBRL Taxonomy for institutions that choose to use them. The final package is planned for publication in July 2026, or at the latest by September 2026. The EBA expects to submit the final draft amended ITS on FINREP to the European Commission by the end of 2026, with mandatory application of the new templates currently expected from the end of September 2027, after which they will be integrated into version 4.4 Phase 2.