The licence holder must meet a current ratio of 1:1 (total current assets / total current liabilities) and hold a minimum amount of net tangible assets required for the maximum revenue allowed under the licence held for Licence Category 1 and above. Now, they are required to report their current ratio of assets to liabilities by a simple QBCC online form. Current Ratio: A 1:1 ratio (current assets/current liabilities) must be held at all times. • The maximum revenue limit for self-certifying categories will be raised from $600,000 to $800,000. Which means you must have at least $1 in current assets for every $1 of current liabilities. However for annual reporting and QBCC compliance the above areas are considered a priority. It is very important for QBCC licence holders to keep a watchful eye on their financial data so that any issues can be addressed immediately. Current ratio: Needs to be at least 1:1 at all times. Depending on their licence category, licensees may now be required to provide more detailed financial information to achieve compliance. Current Ratio. This test is required when turnover exceeds $600,000; however, even if your turnover is under $600,000 the QBCC can still requires you to … Self-certifying licensees will also now need to report their current ratio of assets to liabilities to provide “more complete financial information” to the QBCC. At this stage, there is a planned online reporting tool for licensees to use. “The QBCC expects to be inundated with financial reports as the December 31 deadline nears. The minimum current ratio for a licensee is 1:1. Need to report their current ratio of assets to liabilities. The current ratio shows the amount of current assets of a business in relation to its current liabilities and it helps determine financial viability. Explained below are the two main requirements imposed by QBCC: The Tests. • if you no longer meet the minimum Current Ratio of at least 1:1; • if your Maximum Revenue (MR) needs adjusting (you must not exceed your MR by more than 10% in each financial year); • a significant change to your business structure; • if QBCC requests it. Failure to satisfy one or more of these requirements by 30 June should prompt a strategy developed with a financial adviser for future resolution. On the other hand, you are not required to present a new MFR Report if you want to downgrade from Category 1-7 to a Self-Certifying (SC1 or SC2) license. Categories SC1 to Category 3 (turnover up to $30M) will: Continue to be required to report decreases in Net Tangible Assets of 30 percent or … 1. No longer meeting the minimum Current Ratio of at least $1 in current assets for each $1 of current liabilities; In addition the QBCC may request that you prepare an MFR Report at any time. As a final reminder to keep the QBCC away you should always focus on the following QBCC rules: Don’t go over your maximum revenue amount by more than 10% without informing the QBCC Keep your ratio of current assets to current liabilities to at least 1:1 Ensure you meet your Net Tangible Assets requirements The QBCC will be monitoring these ratios. There are many other requirements of the MFR such as the requirement to pay all outstanding debts. A new online reporting tool is proposed to be available to support this; Search for: Client Login (07) 3217 2477 ... You need to maintain a ratio of current assets to current liabilities (Current Ratio) of at least 1:1. The current ratio test will determine the solvency of a company. Financial reports as the requirement to pay all outstanding debts report their current ratio test will determine the solvency a. The current ratio shows the amount of current assets for every $ 1 of current liabilities solvency of a.... 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