![]() This account refers to money (bills and coins) still in the possession of the cooperative’s custodian. An investment normally qualifies as a cash equivalent only when it has a short maturity of, say, three months or less from the date of acquisition. Standard Chart of Accounts for Cooperatives ACCOUNT CODEĪSSET ACCOUNTS – are resources controlled by the cooperative as a result of past events and from which future economic benefits are expected to flow to the cooperativeĬash and other assets that are reasonably expected to be realized in cash or intended for sale or consummation within twelve months after the balance sheet date, or the normal operating cycle of the business, unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the balance sheet date (PFRFC Chapter IV, Section 2.1.)Ĭash and short term, highly liquid investments, and held to meet short-term cash commitments rather than for investment or other purposes. It also describes the accounting policies and the measurement basis/bases used in the preparation of the financial statement. Notes to Financial Statementsprovide narrative descriptions or disaggregation of items presented in the above statements and information about items that do not qualify for recognition in those statements. Cash Flows Statementprovides information about the changes in cash and cash equivalents of a cooperative for a reporting period, showing separately changes from operating activities, investing activities and financing activitiesĮ. Statement of Changes in Equity presents the amounts of investments and withdrawals by members, addition and utilization of statutory funds, movement in donations and grants, and revaluation surplus during the period.ĭ. In a cooperative the difference between revenues and expenses is called net surplus that is allocated in accordance with the Cooperative Code or the cooperative’s bylaws.Ĭ. Expenses are classified according to their function as part of cost of sales/services rendered, distribution or administrative activities. It includes revenues, costs and expenses, gains and losses and net surplus or net loss. Statement of Operations (Income Statement) presents its financial performance for the period. Assets and liabilities are further classified as current or non-current.ī. Statement of Financial Condition (Balance Sheet) presents a cooperative’s assets, liabilities and equity as of a specific date-the end of the reporting period. G) provide basis in monitoring, supervision and business linkages.Ī complete set of financial statements includes the following components:Ī. Specifically, these shall:Ī) ensure uniformity and common understanding of accounts ī) guide in the installation of accounting and internal control systems Į) sets standards and discipline in measuring the financial safety and soundness į) facilitate the analysis and evaluation of financial management performance The basic purpose of prescribing the standard chart of accounts is to provide guidelines in the use of account and account titles in the preparation of financial statements for the use of all types of cooperatives. ![]() 9520, otherwise known as the Philippine Cooperative Code of 2008 This Circular shall be applied in the accounting and financial reporting of all types of cooperatives, duly registered with the Cooperative Development Authority pursuant to Republic Act No. 6939, an Act creating the Cooperative Development Authority defining its Powers, Functions and Responsibilities, the Authority hereby issues this Memorandum Circular prescribing the usage of Standard Chart of Accounts for Cooperatives in conformity with the Philippine Financial Reporting Framework for Cooperatives or MC 2015 -06. Pursuant to Section 3 of Republic Act No. ![]() SUBJECT : REVISED STANDARD CHART OF ACCOUNTS FOR COOPERATIVES
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