With new laws about to kick in making it harder for builders to hide their cashflow problems, the frivolous assets some are using to boost their bottom lines can be revealed.
Hayden Johnson, The Courier-Mail Subscriber only|December 1, 2019 6:00pm
BUILDERS are listing flocks of birds, cryptocurrency and jet skis as assets to bolster their balance sheets to avoid being suspended under the building watchdog’s strict new financial reporting crackdown.
The Queensland Building and Construction Commission’s (QBCC) landmark financial reporting laws will force about 70,000 small and mid-sized companies to provide information before the December 31 deadline.
The laws, which are designed to reduce the number of builders going into liquidation, will allow the QBCC to audit and assess the financial health of a company.
So far, just 9100 of the 70,000 licensees who will be caught in the net have lodged their annual reports. Companies who fail to submit the financials risk licence suspensions or cancellation.
Commissioner Brett Bassett said the laws would make it harder for builders to hide their cashflow problems by listing frivolous assets to boost their bottom line.