A return to simpler financial reporting for contractors in financial categories SC1, SC2 and 1-3.
Amendments to the Minimum Financial Requirements Regulation (MFR Regulation), mean contractors in financial categories SC1, SC2, 1, 2 and 3 will again be able to submit simpler financial reporting to the QBCC as part of a MFR report.
The Australian Accounting Standards Board (AASB) amended accounting standards that impact on the Minimum Financial Requirements (MFR) Regulation in July 2021. These changes removed the ability for some for-profit entities to prepare Special Purpose Financial Statements (SPFS) to satisfy reporting requirements, including MFR reporting to the QBCC.
As a result, all QBCC licensed contractors in financial categories SC1, SC2, 1, 2 and 3, were required to prepare General Purpose Financial Statements for MFR reports, which increased costs for these licensees.
The Queensland Government listened to industry concerns about these costs and has amended the MFR Regulation to reinstate SPFS for these licensees. Contractors who are applying to change their maximum revenue to an amount covered by one of the above financial categories may also apply the new provisions.
This change applies to financial information in MFR Reports for the quarter ending 31 December 2023 onwards.
There are no changes to annual reporting requirements.
Queensland’s building industry regulator has banned a Gold Coast accountant from providing Minimum Financial Requirements (MFR) financial reporting information on behalf of building industry licensees for three years.
The Queensland Building and Construction Commission (QBCC) has banned Kevin Fleiner of PJC Business Consulting from being a ‘Qualified Accountant’ for the purposes of MFR reporting.
Mr Fleiner is excluded from providing MFR Reports but can provide annual financial reporting services to building industry clients.
Queensland is the only jurisdiction in the nation where the building regulator requires licensees to submit annual financial reporting information.
The privacy and confidentiality requirements of the Queensland Building and Construction Commission Act 1991 prohibit the QBCC from disclosing information that does not appear on a publicly available QBCC register.
Accountants excluded under the QBCC Act appear on the register of excluded accountants.
QBCC Commissioner, Anissa Levy, says financial reporting helps to provide reassurances about the financial wellbeing of a licensee, and an accountant’s role in preparing reports is an important one.
“Our strict financial reporting laws help protect industry members and home owners, so the QBCC carefully monitors information provided by accountants and takes exclusion action against accountants in appropriate cases,” Ms Levy says.
An accountant can be excluded by the QBCC if, within the previous three years, the accountant has:
The last time the QBCC excluded an accountant was in September 2020.
“We liaise regularly with accountants and their representative bodies to ensure they are aware of their responsibilities regarding MFR reporting and any other relevant legislation,” Ms Levy says
The QBCC provides regular educational newsletters to accountants and meets quarterly with leading accountancy organisations, the Institute of Public Accountants, Chartered Accountants Australia and New Zealand, and Certified Practising Accountants.