It has been a little challenging for accounting firms, here are some basics
QBCC 1 July 2022 to 16 February 2024
On 1 July 2022, they made EVERYONE do GPFR, then they changed it back on 16 February 2024 after 18 months of feedback.
- On 1 July 2022 QBCC made it mandatory for ALL licensed builders to prepare GPFR.
- This includes sole traders doing $65,000 a year in revenue.
- This compliance strategy placed a burden on licensed builders and thier accountants.
- We helped over 200 accounting firms to meet QBCC GPFR requirements.
- We worked directly with QBCC staff to ensure compliance.
- The CA, CPA and IPA weighed in and asked QBCC to reconsider this position as it put too much pressure on.
- QBCCs intentions were positive but the execution was not managed as well as it could have been.
- After 18 months of frustration, QBCC removed this financial reporting burden in February 2024, much to the relief of our accounting firms.
- However, the larger categories are still required to prepare GPFR (as well as other random events such as an audit).
What we believed should have been done
QBCC should have created a "Tier 3 Template".
The excel template should have included the usual SPFR components but also:
- Instructions for recording provisions - especially for annual and long service leave, but also for impairment or credit loss.
- Instructions for recording leases - or at least a disclosure on lease start date, lease cost, lease term and renewal. Only for "significant" leases, such as an office or warehouse, not a laptop.
- Instructions for recording deferred tax - most accounting firms haven't done this since university. The purpose is to present future tax payable and future tax deductions, which change each year based on activity.
- Instructions for cash flow management - many accounting firms don't use cash flow in thier SPFR, so some better instructions would be helpful.
At Entry Counts, we are designing "Tier 3" systems for our clients and hope to roll this out over 2025 and 2026.
Stay tuned.
QBCC media release: Email from QBCC staff, 16 February 2024
Dear colleagues,
In this update, we will provide some good news, a helpful hint, and some important information to note for annual reporting lodgements.
MFR Regulation amendment (the good news)
The amendment to the MFR Regulation has been announced and commences today, Friday 16 February 2024, relating to SPFS v GPFS requirements.
If you have a client who is required to prepare an MFR Report in financial category SC1, SC2, categories 1 to 3, QBCC will again accept Special Purpose Financial Statements.
This change applies to financial information in MFR Reports for the quarter ending 31 December 2023 onwards.
This change does not affect the annual reporting requirements for SC1 and SC2 (still a 3 page form, no supporting documents required) or for categories 1-3 (annual reporting form and internal management accounts required).
There are no changes to the existing requirements for contractor licensees in financial categories 4 to 7 – for both MFR Reports and annual reporting purposes, these licensees are required to provide General Purpose Financial Statements.
You can view the amendment to the regulation here: