The QBCC (The Queensland Building and Construction Commission) has confirmed that from 1 July 2022, all QBCC licensees generating more than $800K per financial year, must provide General Purpose Financial Statements (GPFS) when submitting their documentation under Minimum Financial Requirement (MFR) Reporting.
Up to 30 June 2022, licence holders were able to submit Special Purpose Financial Statements to QBCC to notify of changes in revenue, net tangible assets or to upgrade their existing licence category. Special purpose financial statements (predominantly produced by the accounting industry for small-medium sized businesses) are produced for non-reporting entities in accordance with accounting standards outlined in the financial report.
From 1 July 2022, QBCC will require licence holders to prepare General Purpose Financial Statements (GPFS) complying with the applicable accounting standards as outlined by the Australian Accounting Standards Board (AASB). GPFS are financial reports that businesses like large companies (i.e. ASX listed) are required to submit as part of their responsibilities to shareholders and other governing bodies.
These changes will result in licence holders preparing GPFS in the approved format and in accordance with AASB, as follows:
- a profit and loss statement
- a balance sheet
- a statement of cash flows
- aged debtors and creditors report that includes the date each invoice is due to be paid or received
- notes to the financial statements as required by the prescribed accounting standards
- a description of the measurement within the meaning of the prescribed accounting standards on which the financial statements are based
- the accounting policies or reports relevant to the financial statements.
The change in QBCC’s reporting requirements is a result of changes to the Australian Accounting Standards (not by QBCC’s reporting policy) and will result in an increase in both complexity and costs associated with meeting a licensee’s reporting obligations.
We encourage you to reach out to Elements Advisory Group, who can assist you in making sure the changes are managed as best as possible for your business.
