Parker (2002) explains that under the changes, the face of the Statement of Financial Position requires more disclosure than was required in the out of date Profit and Loss Account. Disclosure

This statement is supported by evidence taken by one of the four biggest accounting firms Ernst and Young (E&Y). E&Y surveyed 100 companies and found, of the companies surveyed, several found varying interpretations of the standards and a considerable degree of confusion.

Curtis (2001) explains this standard sets out disclosure that is required in financial reports that are not already covered by specific accounting standards. The standard outlines general formatting requirements of financial reports and introduces some new disclosures. Curtis (2001) highlights each disclosure that includes: number of employees, the legal form of the entity, who the parent and ultimate parents entities are, dividends and attaching franking credits, economic dependencies and a narrative discussion on material changes to comparative information.

The overall aim of the trilogy standards is to align Australian standards with the International Harmonisation Program and to move towards a balance-sheet emphasis. The AASB have been following a program to bring Australian standards closer to the overseas accounting bodies that are aligned with the International Accounting Standards Board (IASB). The aim is so financial information between all counterparts concerned can be compared so that preparers of the information may benefit from overseas capital investment to their firms. The balance sheet emphasis consigns itself to the SAC’s whereby a focus is put towards whether items satisfy the definitions of an asset and a liability rather than matching income and expenditure to arrive at profits. Therefore, the trilogy has many bona fide characteristics and besides the early dissatisfaction and confusion; the accounting profession has made many amendments through exposure drafts. Ultimately the trilogy will aim to satisfy most characteristics of the SAC’s with a greater degree of significance, thus allowing users and preparers a more effective and efficient tool with respect to disclosure.

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