Since we were advised of the impact of the AASB’s Framework Reform on the MFR Regulations and the reporting requirements for Category 1 to 3 licensees, the Joint Accounting Bodies have continued to engage with the Queensland state government and the Queensland Building and Construction Commission (QBCC) with the objective of achieving balanced reporting for small licensees that would still allow for effective compliance with the QBCC requirements. We have advocated for the amendment of the MFR Regulations to permit Category 1 to 3 licensees to prepare SPFS.

In good news, the Queensland Government has announced the amendment to the MFR Regulation in relation to SPFS v General Purpose Financial Statements (GPFS) requirements and its commencement date is 16 February 2024.

Licensees in financial categories SC1, SC2 and categories 1 to 3 who have to prepare a MFR Report will be able to prepare Special Purpose Financial Statements to lodge with the QBCC.

The change applies to financial information in MFR Reports for the quarter ending 31 December 2023 onwards. It 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. These licensees are required to provide GPFS for both MFR Reports and annual reporting purposes.