Updates from the QBCC: The move towards General Purpose Financial Statements

Business Insights

As of 1 July 2022, the Queensland Building and Construction Commission (QBCC) have started enforcing the preparation of General Purposes Financial Statements (GPFS) for all financial statement lodgements following the end of the 12-month transition to AASB 2020-2 and AASB 1060.

Who needs to prepare GPFS?

Licence Categories 1-3:the Queensland Building and Construction Commission (QBCC) have started enforcing the preparation of General Purposes Financial Statements (GPFS)

  • When lodging a Minimum Financial Requirements (MFR) report for a financial year commencing on or after 1 July 2022

Licence Categories 4-7:

  • Every year commencing on or after 1 July 2022 when lodging your annual financial reporting information.
  • When lodging a Minimum Financial Requirements (MFR) report for a financial year commencing on or after 1 July 2022.

Annual Financial Reporting

Licensees who fall between categories 1-3 can continue to provide financial information or Special Purpose Financial Statements (SPFS) provided they include:

  • Profit and loss statement
  • Balance sheets (assets & liabilities)
  • Aged debtors and creditors listing
  • Statement of cash flows

In addition to the above, licensees in categories 4-7 will be required to provide signed general purpose financial statements (GPFS), including:

  • Notes to the financial statements required under the prescribed accounting standards
  • A description of the measurement within the prescribed accounting standards, on which the financial statements are prepared
  • The accounting policies relevant to those financial statements

MFR Reporting

All licences (categories 1-7) will be required to provide signed financial statements when lodging an MFR report. A licensee current must provide an MFR report when:

  • Applying for a new licence
  • Increasing your maximum revenue (outside of the 10% threshold)
  • Reporting a decrease in net tangible assets (>30% for SC1 to category 3, or 20% for categories 4-7)
  • No longer meeting the minimum current ratio of 1:1
  • During the course of a QBCC auditThe QBCC have only implemented the above changes from 1 July 2022.
  • Undertaking a change in ownership

What does this mean for the 2022 financial year?

The QBCC has only implemented the above changes from 1 July 2022, meaning they will continue to accept financial information or SPFS for the period ended 30 June 2022.

As such, any licensees in categories 1-3 seeking to increase their maximum revenue through the lodgement of a new MFR should consider lodging their 30 June 2022 financial statements with the QBCC by the due date if doing so would delay their requirement to prepare GPFS to a later year. Licensees seeking to lodge an MFR report using SPFS as at 30 June 2022 will need to ensure the report is signed by 31 October 2022 and lodged with the QBCC by 30 November 2022.

For more information 

If you require more information or have any questions, please reach out to Nick Farr or your local RSM office

Authors

Nick Farr
Senior Manager - Brisbane
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Joel Ashworth

Senior Manager - Brisbane

Contact Joel

 

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Sam Crosswell

Manager - Brisbane

Contact Sam