Date posted: 25/09/2023

Advocacy update on QBCC MFR requirements

Joint Accounting Bodies policy position for the QBCC Minimum Financial Reporting (MFR) requirements.

In brief

  • We have continued to engage with the Queensland state government and the Queensland Building and Construction Commission (QBCC)
  • We have advocated for Category 1 to 3 licensees to prepare Special Purpose Financial Statements, including six additional specified standards
  • We understand the ongoing challenges members and Category 1 to 3 licensees face and we will continue to pursue this matter and implore its urgency

Since we were advised of the impact of the AASB’s Framework Reform on the Minimum Financial Reporting (MFR) regulations and the reporting requirements for Category 1 to 3 licensees, we have continued to engage with the Queensland state government and the Queensland Building and Construction Commission (QBCC) with the objective of establishing a reporting mechanism that strikes the right balance between effective compliance and the additional regulatory requirements imposed as a result of the AASB’s financial reporting changes.

We have advocated for Category 1 to 3 licensees to prepare Special Purpose Financial Statements (SPFS) including additional specified standards for MFR reporting purposes, instead of General Purpose Financial Statements (GPFS) that are currently being asked for. The six standards we have identified for SPFS are:

(a) AASB 101 Presentation of Financial Statements;
(b) AASB 107 Statement of Cash Flows;
(c) AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors;
(d) AASB 124 Related Party Disclosures;
(e) AASB 1048 Interpretation of Standards; and
(f) AASB 1054 Australian Additional Disclosures.

We do not support a more onerous financial reporting framework on the basis that it will impose a significant workload on our members and costs to their clients. We have collectively worked with our colleagues in the Joint Accounting Bodies in developing this policy position and see no reason why SPFS that comply with specified standards cannot be a viable and effective alternative instead of the current requirement for GPFS, for Category 1 to 3 licensees. We understand the ongoing challenges members and Category 1 to 3 licensees face.

We will continue to pursue this matter and implore its urgency with both the Queensland state government and the QBCC.