The current ratio test will determine the solvency of a company. 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. There are many other requirements of the MFR such as the requirement to pay all outstanding debts. 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 … A new online reporting tool is proposed to be available to support this; Now, they are required to report their current ratio of assets to liabilities by a simple QBCC online form. 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. Failure to satisfy one or more of these requirements by 30 June should prompt a strategy developed with a financial adviser for future resolution. 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 … At this stage, there is a planned online reporting tool for licensees to use. • The maximum revenue limit for self-certifying categories will be raised from $600,000 to $800,000. The QBCC will be monitoring these ratios. The current ratio shows the amount of current assets of a business in relation to its current liabilities and it helps determine financial viability. 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. Need to report their current ratio of assets to liabilities. 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 minimum current ratio for a licensee is 1:1. 1. However for annual reporting and QBCC compliance the above areas are considered a priority. Current Ratio. Explained below are the two main requirements imposed by QBCC: The Tests. Which means you must have at least $1 in current assets for every $1 of current liabilities. “The QBCC expects to be inundated with financial reports as the December 31 deadline nears. 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 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. Current ratio: Needs to be at least 1:1 at all times. 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. Depending on their licence category, licensees may now be required to provide more detailed financial information to achieve compliance. Current Ratio: A 1:1 ratio (current assets/current liabilities) must be held at all times. • 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.