The EBA's aim is to align the reporting framework for investment firms and credit institutions with the new IFRS 9 requirements while ensuring reporting institutions have enough time to implement the changes, it said.
IFRS 9 "fundamentally changes the way financial instruments are accounted for and therefore requires a thorough update of the financial reporting framework", the EBA said.
Some changes are also based on data and feedback from banks, plus an EBA review of the templates and instructions used by institutions under the national General Accepted Accounting Principles (GAAP) to ensure the integrated framework for supervisory reporting of financial information is aligned, it said.
The EBA has made changes to the concepts of gross carrying amount, accumulated changes in fair value due to credit risk, non-performing and forborne exposures, the reporting of economic hedges, investments in associates, subsidiaries and joint ventures and their dividends, mortgage exposures, and the counterparty of financial assets.
The technical standards will apply, depending on the accounting year of each institution, from the first date where IFRS 9 as endorsed by the EU becomes applicable. For an institution with a January - December accounting year the first application date will be 1st January 2018, with a first reference date of 31 March 2018, the EBA said.