MFR Workshop

MFR ANNUAL REVIEW WORKSHOP

You are now ready to participate in the MFR workshop set to practically prepare you for compliance with the annual review process.

  • What are the steps you should go through to make the annual review process as painless as possible?
  • What documents do you need to get together?
  • Run a test for yourself to see if you will make it through applying the full accounting standards?
  • What do you do if you receive a notice from the QBCC?
  • Do you have the right team in the background to make sure you get it right and have the ability to quickly respond to any issues raised by the QBCC.

Practical matters you must work through:

  1. CASHFLOW – prepare cashflow statement acceptable to the QBCC
  2. CREDITORS & DEBTORS – review your creditors and debtors.  If your creditors are not on terms then you need to negotiate clear terms with them.  For example, if a supplier signs up with you on 14 day terms and you are not meeting, that you will need evidence that the supplier has agreed to accept 60 day terms.
  3. EVIDENCE – Make sure you have the documents to substantiate key information supplied to the QBCC.  For example your work in progress should be able to be supported by signed contracts, job costing data, invoicing and approved variations.
  4. RELATED PARTY LOANS – accounts must be done according to the QBCC MFR standard.  You must be able to prove up that the entity itself meets the ratio.
  5. VALUATIONS – do you have evidence to support the valuations of property and plant and equipment?  It does not matter what your accounts show, you must have evidence which gives independent verification.
  6. MISMATCH – run a check of your accounts and ascertain if you have a mismatch.  For example, if you claim you are at 50% for frame stage but you have not incurred any costs for the purchase of trusses this mismatch will trigger concern from the QBCC due to the mismatch.  Does the information you have provided match up with publicly available information.

So you are asking yourself, do I really need to provide this?

The answer is – yes.  Unless you are willing to risk the suspension of your licence while it is sorted out.

QBCC Checklist for MFR Reports & Annual Review Reporting

Click here to download a QBCC Checklist for MFR Reports & Annual Review Reporting. This checklist is designed to capture the areas of the QBCC MFR Regulations that are easily missed or misunderstood in each of the categories of assets, liabilities and revenue that most commonly cause problems.

Note: That is not an exhaustive checklist and you should still read the MFR Regulations at the sections sighted.

 

 

 

 

Not intended as legal advice. Read full disclaimer.