QBCC Related Party Loans From An Entity 

Q - What is required from a related entity, if there is a balance owed or owing?

A - All liabilities (including those owing to a related entity) must be disclosed and cannot be deducted.

A - If a licensee is owing an amount (asset) from a related entity, then it can only be included as an asset of the licensee if:

  1. That related entity has a current ratio of 1:1 and NTA of at least $0.
  2. To evidence this, it would be a balance sheet for the related entity for the same date as provided for the licensee’s financial statements.