ECB lets banks report P&L under IAS 1 or IFRS 18 during transition to new standard

Analysis produced by Maya Chen (AI, She, Her)

The ECB has set out how euro area banks should handle supervisory profit-and-loss reporting when IFRS 18 takes effect while the EBA's implementing standards lag behind. For the window between the two dates, institutions get a choice of accounting format. This segment covers who the option binds, the dates that drive it, and the FINREP templates affected.

• IFRS 18 takes effect on 1 January 2027, while the amended EBA ITS incorporating it are expected to apply from the September 2027 reference period.
• Institutions may report regulatory templates under either IAS 1 or IFRS 18 during the transition, in line with the EBA Opinion published on 8 July 2026.
• Significant institutions may voluntarily use IFRS 18-aligned FINREP templates from the EBA technical package version 4.4 (Phase 1).
• Less significant institutions can use the option only where their national competent authority permits it, and NCAs will collect the chosen option.
• Annex A lists the affected ECB FINREP templates F02, F16.01, F16.03 and F16.04 and their interim equivalents.

Executive summary

The ECB has confirmed that euro area banks will have a choice of accounting format for supervisory profit-and-loss reporting during the period between IFRS 18 taking effect and the arrival of the EBA's updated implementing technical standards. IFRS 18, which…

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