meta_id 3306791

On July 8, 2026, the European Banking Authority (EBA) published a final report on the implementation of International Financial Reporting Standard 18 (IFRS 18) in the Financial Reporting (FINREP) framework under Article 430(7) of Regulation (EU) No 575/2013. The report presents revised supervisory reporting templates and instructions to align FINREP with IFRS 18, which became mandatory for public consolidated financial statements of institutions using IFRS from reporting periods beginning January 1, 2027. IFRS 18, issued by the International Accounting Standards Board in April 2024 and endorsed by Commission Regulation (EU) 2026/338, introduces a new structure for the Statement of Profit or Loss, classifying items into three categories: operating, investing, and financing. The EBA chose to implement IFRS 18 into FINREP to reduce double reporting and align supervisory financial information with accounting standards. The revised framework reshapes template F 02.00 (Statement of Profit or Loss) using a retail and investment bank as a benchmark to ensure standardised presentation while maintaining current information levels. Key changes include introducing the mandatory subtotal "operating profit or loss," adding new subtotals including "operating and investing profit or loss," and creating aggregated representations of income and expenses in the investing and financing categories. Templates F 16 and F 45 now include columns for the three new categories to preserve granularity regardless of institutions' business models. The EBA received 16 consultation responses, addressing concerns about different business models and requesting clearer guidance on classification rules. Respondents generally supported the pragmatic approach, though some requested more detailed line items to improve transparency. The final draft implementing technical standards will be merged with broader FINREP amendments and submitted to the European Commission. The technical standards are expected to apply from September 2027. The data point model and XBRL taxonomy based on revised templates will be published by end of July 2026 or early September 2026 at the latest. The public consultation on the broader implementing regulation ends July 10, 2026.