The current AASB 1018 "Statement of Financial Performance" was issued in October 1999, along with two other presentation and disclosure standards, AASB 1034, "Financial Report Presentations and Disclosures" and AASB 1040 "Statement of Financial Position". These three standards became generally known as "the trilogy" and were first pertinent for 30 June 2001 year-ends. The introduction of the trilogy was the largest change to the presentation of financial reports in Australia in recent times with the balance sheet and profit and loss account being replaced with a Statement of Financial Position and Statement of Financial Performance. The two main reasons behind the change are the international harmonisation program and the move towards a balance-sheet emphasis. After the first year of the trilogy implementation, a significant number of issues arose in relation to professed inconsistencies, differences in interpretation and lack of comparability owing to the flexibility of presentation allowed under the revised standards. .
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under the changes, the face of the Statement of Financial Position requires more disclosure than was required in the out of date Profit and Loss Account.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, which was previously in the notes to the financial statements, can now appear on the face of the statement. Adam-Smith (2001) adds, that a more detailed income and expense breakdown is required, therefore summarising expenses by either function or nature. .
In addition, Adam-Smith (2001) points out that if revenue from the sale of goods is exposed in the revenue disclosures then the associated cost of goods sold will also be required. This in effect will disclose the gross margin. .
Thirdly, "abnormal items" no longer exist, nevertheless Curtis (2001) mentions, the standard requires disclosure of individually significant expenses where they materially influence the result of the company.