Banks gain choice of profit and loss reporting format in 2027
On October 15, 2026, the European Central Bank (ECB) allowed transitional reporting under IAS 1 or IFRS 18. IFRS 18 takes effect on January 1, 2027; amended reporting standards are expected to apply from the September 2027 reference period.
Two formats during the transition
Institutions can choose IAS 1 or IFRS 18 from January 2027 until the amended implementing technical standards (ITS) apply.
The option follows the European Banking Authority (EBA) Opinion of July 8, 2026, and reduces the burden of maintaining two profit and loss formats.
Significant institutions covered by the EBA ITS can voluntarily use IFRS 18 FINREP templates from technical package version 4.4, Phase 1. Significant institutions under the ECB FINREP Regulation have the same flexibility; the ECB will amend that regulation for the new standard.
Those institutions can meanwhile consult the EBA Opinion and Annex A or B. Less significant institutions can choose only where national competent authorities (NCAs) permit it.
NCAs will collect institutions' choices.
Template changes stay targeted
Annex A maps existing templates to interim IFRS 18 equivalents: F02 in Annexes I and II becomes F02.01; Annex I templates F16.01, F16.03 and F16.04 become F16.01.1, F16.03.1 and F16.04.2. Other Annex I and II templates remain unaffected.
Annex B replaces F02 data points in Annexes IV and V with those in worksheets “2.1 (Annex IV) DP 2027” and “2.1 (Annex V) DP 2027,” respectively.
Other data points remain unchanged.
The option supports the ECB reform agenda of streamlining supervision while safeguarding resilience.
Flexibility has national limits
The transition separates the accounting standard's start date from mandatory use of revised supervisory templates.
It permits institutions to avoid maintaining parallel profit and loss formats.
For less significant institutions, that flexibility remains subject to national supervisory permission.
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