ECB lets banks choose between IAS 1 and IFRS 18 during reporting transition

Banks will be able to choose between IAS 1 and IFRS 18 for regulatory profit-and-loss reporting from January 2027 until revised European reporting rules apply, the European Central Bank says. The choice is temporary.

IFRS 18 takes effect on January 1, while the amended European Banking Authority reporting standards are expected to apply from the September 2027 reference period. The ECB published its notice on October 15, ahead of that mismatch in reporting dates.

Significant institutions can voluntarily use the EBA's IFRS 18-aligned FINREP templates. The flexibility also covers significant banks under the ECB's own FINREP regulation. Less significant institutions receive the choice only if their national supervisor permits it. National authorities will collect banks' selections.

Photograph: Norbert Nagel, cropped under CC BY-SA 4.0.