The Category licences have until 31 December 2022 to lodge and the SC (Self Certification) holders until March 2023, for their 2022 financial information.
Although the annual reporting due dates are some time away, it is best to start looking at your 30 June 2022 financial information early.
The due dates are 31 December 2022 for Categories 1-7 and 31 March 2023 for SC1 and SC2.
We’ve seen an uplift in review and minimum financial requirements audit activity from QBCC using annual reporting information from 30 June 2021.
Typical triggers for review or audit are:
- Exceeding maximum revenue for the licence by greater than 10%
- Not having a current ratio of 1:1 at reporting date
- Insufficient net tangible assets for licence’s maximum revenue
A reminder that the current ratio is current assets (cash in bank, stock on hand, work in progress, accounts receivable) are greater than current liabilities (bank overdrafts, credit cards, ATO liability, creditors, unpaid superannuation and similar).
If a business receives an minimum financial requirements audit, it will be required to have the following documents prepared and provided to QBCC: Minimum Financial Report (MFR), signed financial statements included aged debtors, aged creditors and cash flow statement. If a Deed of Covenant is relied on, a Covenantors Statement of Financial Position will also be required. The financial information can be no older than four months and audit notices require provision of information within 21 days.
Financial Statements dated after 30 June 2022 are required to be prepared as General Purpose Financial Statements (GPFS), instead of Special Purpose Financial Statements. GPFS are more complex to prepare, having additional disclosures and reporting requirements.
Should you find that June 2022’s financial statements do not pass the current ratio of 1:1 or that a business has exceeded its maximum revenue by more than 10% it is recommended you contact us today.
