Psak 27 (98 Rev
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Accounting of Cooperatives
SFAS No. 27 (1998 revision)
STATEMENT OF FINANCIAL ACCOUNTING STANDARD NO. 27 (1998 REVISION) ACCOUNTING OF COOPERATIVES Paragraphs printed in bold letters are standard paragraphs, which must be read in the context of the explanatory paragraphs and implementation guidance printed in normal letters. There is no requirement to apply this statement of Financial Accounting Standard-Accounting of Cooperatives on items considered to be immaterial. PREFACE Characteristics of a Cooperative 01.
A cooperative is an entity, which organizes the utilization and efficient usage of the economic resources of its members based on the principles of a Cooperative and the norms of economic efforts to increase the living condition of its members in particular and the community in which its operates in general. Accordingly, a cooperative is a people’s economic movement and the main pillar of the national economy.
02.
The principles of a cooperative constitute the basic ground for a cooperative to conduct its business as an entity and people’s economic movement. These principles comprise: stand alone, open membership, democratic management, the distribution of the net operating result is made on an equitable basis proportionate to the contribution of each member, a limited compensation on capital, cooperative education and cooperation between cooperatives.
03.
The main characteristic of a cooperative, which differentiates it from other entities is that the member of a cooperative has a dual identity, namely as an owner and at the same time as user of the cooperative’s services (user own oriented firm). Therefore : a. A cooperative is owned by members who are participating based on at least one of the same economic interests. b. A cooperative is established and developed based on the self confidence value to help and be responsible to oneself, solidarity, justice equality and democracy. In addition, members of a cooperative believe in the value of the ethics of honesty, openness, social responsibility and care for others. c. A cooperative is established, provided with capital, financed, managed, supervised and utilized by its own members. d. The main task of a cooperative is to support the economic interest of its members in the framework of promoting the members’ welfare. e. If there is an excess service capacity of the cooperative for its members, the excess service capacity may be used to meet the need of the community who are non-members of the cooperative.
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04.
In promoting the welfare of its members, a cooperative is not only required to promote the economic efforts of its members, but also to develop the members’ resources through continuous and higher education, so that the members will become more professional and will be able to keep up with the development of their business activities.
05.
As the activator of the people’s economy and the main pillar of the national economy, the government has a very strong interest in the success of the cooperatives. Accordingly, the government plays an important role in the development, protection and providing business opportunities to the cooperatives. With respect to the development, protection and providing business opportunities, the cooperatives must be guided by the provisions stipulated by the government. These provisions affect the accounting treatment of the cooperatives.
The structure of organization of a Cooperative 06.
The cooperatives are divided into Primary and Secondary Cooperatives. A primary cooperative is a cooperative with individual membership. A secondary cooperative is a cooperative, the members of which are cooperative legal bodies.
07.
The amount of member’s ownership in a cooperative, either in a primary or secondary cooperative, is in principle the same. Therefore, there is no majority and minority ownership in a cooperative. Accordingly the financial statements of a primary and secondary cooperatives are not consolidated.
The business and types of Cooperatives 08.
A cooperative can conduct businesses as any other entities, such as in the trade sector, in the manufacturing industry, financial services and financing, insurance services, transportation services, professional services and other services. The accounting treatment of the cooperatives shall refer to the statement of the financial accounting standard which regulated the accounting treatment in each of the sector of industry.
09.
Cooperatives can be categorized into several types. However, based on the interest of the members and the main business of the cooperatives, they are categorized into four types, namely consumer cooperatives, producer cooperatives, saving and borrowing cooperatives and marketing cooperatives.
Objective 10.
The objective of this statement is to regulate the accounting treatment arising from transaction relationship between the cooperative and its members and other specific transactions of a cooperative. This statement covers the regulations on the recognition measurement, presentation and disclosures in the financial statements.
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Scope 11.
This statement regulates the accounting of cooperative entities for transactions arising from the cooperative’s relations with its members, namely transaction of the contribution of the members of the cooperative, business transactions of the cooperative with its members, and other specific transactions in a cooperative entity, among other reserves, capital participation, capital donations, expenses of the cooperative, and the presentation and disclosures in the financial statements.
12.
This statement does not regulate transactions arising from the cooperative’s relations with non-members. Such transactions shall be treated the same as transactions occurring in other business entities.
13.
Matters of a general nature or which are not specifically regulated in this statement, including accounting of transactions for an autonomous business unit of a cooperatives, shall be treated with reference to the other statements of Financial Accounting Standards.
14.
This statement is applicable to financial statements for presentation to external parties, namely the members of the cooperative, the government, creditor and other interested parties.
15.
The government as one of the parties using the financial statements of a cooperative, may require specific information for certain purposes. This statement does not regulate the presentation of report for the government. The presentation of the specific information is regulated in a separate accounting guidance referring to this statement.
16.
Various types of cooperatives, for example Consumer Cooperatives, Producer Cooperatives, Saving and Borrowing Cooperatives and Marketing Cooperatives may show their own specific characteristics in the presentation of their financial statements, and this can be regulated in a separate accounting guidance referring to this statement.
Definitions The followings are definitions of terms used in this statement. 17.
Cooperative is a business entity, the members of which are individual persons or cooperative legal bodies basing its activities on the principles of a Cooperative and at the same time as a people’s economic movement based on the family principle.
18.
Member of a cooperative is the owner and at the same the user of the cooperative services, who has paid in full the stipulated principal contribution.
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19.
Consumer cooperative is a cooperative, the members of which are the end consumers or the users of goods or services, and the main activity or service is to make collective purchases. An example of a consumer cooperative is a cooperative, the main activity of which is managing a retail shop or a supermarket.
20.
Producer cooperative is a cooperative, the members of which do not have a household or an enterprise of their own but work together under the umbrella of a cooperative to produce and market goods or services and its main activity is to provide, operate and manage a production facility jointly. An example of a Producer cooperative is a Consulting Services Cooperative.
21.
Saving and borrowing cooperative is a cooperative, the main activity or the main service of which is to provide saving and borrowing services to its members.
22.
Marketing cooperative is a cooperative, the members of which are producers, owner of goods or provider of services and its main activity or service is to perform joint marketing.
23.
Principal contribution is the equal amount of money and or equal value of money, which must be paid by a member to the cooperative at the time he becomes a member. The principal contribution cannot be withdrawn as long as the individual is a member.
24.
Obligatory contribution is a certain contribution, which does not have to be equal in amount, that must be paid by a member to the cooperative in a certain time and opportunity. An obligatory contribution cannot be withdrawn as long as the individual is a member.
25.
Member’s capital is the principal contributions and obligatory contribution which must be paid by a member to the cooperative in accordance with the prevailing provisions in the cooperative. Each member has the same voting right, regardless of the amount of his member’s capital in the cooperative.
26.
Donated capital is the amount of money or capital good, which can be valued in money received from other parties as a gift and is not binding. A donated capital cannot be distributed to the members until the cooperative is dissolved.
27.
Participating capital is the amount of money or capital goods, which can be valued in money invested by the investor to add and strengthen the capital structure in enhancing the business of the cooperative.
28.
Reserve is part of balance of the operating result set aside in accordance with the provisions of the Articles of Association or a decision of the members’ meeting.
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29.
Gross participation is the members’ contribution to the cooperative as compensation for the deliveries of goods and services to the members, which includes cost of sales and net participation.
30.
Net participation is the members’ contribution to the operating result of the cooperative, which represents the difference between gross participation and basic expenses.
31.
Revenues from non-members are sales of good/services to non-members.
32.
Cooperative’s burden are expenses related to the cooperative movements which are not related to the business activities.
33.
Balance of Operating Result is the combination of the results of net participation and the gross profit or loss with non-members, plus or minus other income and expenses and the cooperative’s burden and the income tax of the cooperative body.
34.
Promotion of members’ economy is the enhancement of the cooperative services to its members in the form of economic benefit obtained as a member of the cooperative.
35.
Autonomous Activity Unit is part of the organization that stand alone which specific activities and members in a cooperative, so that the autonomous activity unit is equal to an accounting entity. For example, a village unit cooperative (KUD) has an autonomous activity unit for saving and borrowing, an autonomous activity unit for consumers and an autonomous activity unit for distribution. EXPLANATION EQUITY 36.
The equity of a cooperative comprises the members capital in the form of principal contributions with the same characteristics of the principal contribution or obligatory contribution, participating capital, donated capital, reserve and the balance of operating results. Members’ capital 37.
The principal contribution, obligatory contributions with the same characteristics of the principal contribution or obligatory contribution shall be recognized as the equity of the cooperative and shall be recorded at their nominal values.
38.
Formally, a member shall be recognized as a member of the cooperative, if he has deposited a certain amount of money as principal contribution at the time he becomes a member for the first time. In addition, he must also deposit a certain amount of money on a periodic basis as obligatory contributions.
39.
The principal contribution is an equal amount of money, which must be paid by a member to the cooperative at the time he becomes a member. The obligatory contribution is a certain amount of contribution, which does not have to be the
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same, that must be paid by a member to the cooperative curing a certain period and opportunity. 40.
The principal and obligatory contributions function as a risk coverage and therefore cannot be withdrawn as long as the individual is still a member. An obligatory contribution which is related to the member’s loan and other types of obligatory contributions, which in practice can be withdrawn after the loan is settled or at certain times, cannot be recognized as equity.
41.
Although the principal and obligatory contributions can be withdrawn, if the individual resign from the membership of the cooperative, it is however assumed that a member of the cooperative will remain to be a member for an unlimited period of time. Therefore, the principal and obligatory contributions are permanent in nature.
42.
Principal and obligatory contributions which have not been received shall be presented as receivables of principal and obligatory contributions.
43.
The payments of principal and obligatory contributions can be made in installments, the amounts and the period of which shall be determined in the articles of incorporation or other provisions. The presentation of the values of principal and obligatory contributions on the balance sheet shall be by presenting the nominal values of the principal and obligatory contributions. The amounts of principal and obligatory contributions which have not been received yet from the members shall be presented as receivables of principal and obligatory contributions.
44.
Any excess of deposits for principal and obligatory contributions from new members over the nominal value of the principal and obligatory contributions from founder members shall be recognized as equalizing capital of member participation.
45.
The members’ meeting can determine the amounts of deposits for principal and for obligatory contributions for new members, who join the cooperative later, the amounts of which shall be equal to the amounts of principal and obligatory contributions for founder members. If there is an excess over the nominal value of the principal and obligatory contributions for founder members, such excess shall be recognized as equalizing capital of member participation. This capital is not owned by the depositor member, and therefore cannot be withdrawn at the time the member resigns from the cooperative’s membership.
46.
If the cooperative also determines another contribution other than the principal and obligatory contributions as equity, then any excess of contributions over the nominal value of the contribution by a new member shall also be recognized as equalizing capital of member participation.
Participating Capital 47.
Participating capital is recognized as equity and shall be recorded at the deposited nominal amount. In case the participating capital is received in the
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form other cash, the participating capital shall be valued at the market price prevailing at the time of receipt. 48.
A participating capital shares to cover the risk of losses and has a relatively permanent nature. Compensation to the capital provider will be based on the results obtained. Therefore, participating capital is recognized as equity.
49.
A participating capital shall be recorded at the nominal value, and in case the participating capital is received in the form other than cash, the participating capital shall be recorded at the market price prevailing at the time of receipt. If a market price is not available, an estimated price may be used. Sufficient explanation must be disclosed in the notes to the financial statements on the valuation made.
50.
The provisions regarding the agreement with the capital provider relating to the distribution of profit or operating result, the sharing of losses, time period and the rights of the capital provider must be explained in the notes to the financial statements.
Donated capital 51.
Donated capital received by a cooperative which can be used to cover losses, shall be recognized as equity, while donated capital, which in substance represents a loan shall be recognized as a long term debt. This should be explained in the notes to the financial statements.
52.
As the cooperatives are carrying out a national mission to activate the people’s economy and functions as the main pillar of the national economy, they may receive donations from the government or other parties. These donations shall be recognized as equity, if they can be used to cover the risk of losses.
53.
Sometime a donation is received by a cooperative under a restricted condition, so that the donation is in essence a loan. Such donation cannot be recognized as equity, but must be recognized as other long term debt and explained in the notes to the financial statements.
Reserves 54.
A reserve and the purpose of its use must be explained in the notes to the financial statements.
55.
The creation of a reserve can be directed, among other for the development of the business of the cooperative, to cover the risk of losses and for distribution to members who resign from the cooperative’s membership. A reserve established from the balance of the operating results shall be recorded in a reserve account. The purpose of the use of the reserve must be explained in the notes to the financial statements.
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56.
Additional payments made to members who resign from the cooperative membership over the principal and obligatory contributions and other contributions shall be charged to the reserve.
57.
A reserve, which is established from the balance of the operating results obtained each book year intended for the accumulation of capital to be used for the business development and to cover the risk of loss, represents part of the equity. As part of the equity, the reserve will affect the net worth of the cooperative, which reflects the value of the members’ ownership in the cooperative. Accordingly, a cooperative can determine an additional payment in an amount proportionate to the value of the net worth of the cooperative or a certain amount determined in the members’ meeting to a member, who resigns from the cooperative membership during the current year, in addition to the refund of the principal, obligatory and other contributions at the nominal values. The additional payment shall be charged to the reserve of the cooperative.
Balance of Operating result 58.
59.
60.
The balance of the operating result shall be distributed in accordance with the provisions in effect in the cooperative. In the event, the types and the amount to be distributed have already been regulated clearly, the portion that is not the right of the cooperative shall be recognized as a liability. If the types and the amount to be distributed have not been clearly regulated yet, the balance of the operating result shall be recorded as undistributed balance of the operating result, which must be explained in the notes to the financial statements. It is usual in a cooperative, that the balance of the operating result for the current year is distributed in accordance with the provisions of the Articles of Incorporation or the by-law. The requirement to distribute the balance of the operating result is also stated in the Law on Cooperatives. The balance of the operating result is distributed among other to the members, educational fund, and to the cooperative itself. The amount, which represents the right of the cooperative shall be recognized as reserve. The distribution of the balance of the operating result shall be made at the end of the accounting period. The amounts allocated other than to the cooperative shall be recognized as liabilities. In the event a distribution cannot be made, because the types and the amounts to be distributed have not been clearly regulated yet in the Articles of Incorporation or the by-Law, but must wait for a decision of the members’ meeting, the balance of the operating result shall be recorded as an undistributed balance of operating result and must be explained in the notes to the financial statements.
LIABILITIES 61.
Members’ contributions with no characteristics of an equity shall be recognized as short term or long term liabilities in accordance with the maturity dates and shall be recorded at their nominal values.
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62.
SFAS No. 27 (1998 revision)
Members’ contributions with an equity characteristic are certain amounts in money value transferred by the members to the cooperative at their own will as a deposit, which can be withdrawn at any time in accordance with the agreement. These deposits do not bear the risk of losses and are temporary in nature, and therefore are recognized as liabilities.
ASSETS 63.
Assets obtained from donations, the use of which are restricted and cannot be sold to cover losses of the cooperative are recognized as other assets. The type of restriction applicable to the use of the assets shall be explained in the notes to the financial statements.
64.
As an activator of the people’s economy and the main pillar of the national economy, a cooperative often receives assistance from various parties in the form of gift or donation of capital goods to conduct its business. Such capital goods can be recognized as fixed assets owned by the cooperative, although the fixed assets cannot be sold to cover the risk of losses. In the event the fixed asset cannot be used to cover the risk of losses as conditioned by the donor or as stipulated in the deed of the donation, the fixed asset shall be classified as other asset. The type of restriction applicable to the use of the asset shall be explained in the notes to the financial statements.
65.
Assets managed by the cooperative, but which are not owned by the cooperative shall not be recognized as assets and must be explained in the notes to the financial statements.
66.
The members’ meeting of the cooperative can approve a fund raising from the members to be used for a certain purpose in line with the members’ interest. Such fund is owned by the members, the management of which is entrusted to the cooperative, for example a fund for the maintenance of road and rejuvenation of plantation. Such fund is not recognized as the asset of the cooperative. However, the fund must be accounted for separately by the cooperative, as the management of the fund. The existence of such fund must be explained in the notes to the financial statements.
INCOME AND EXPENSES Business transactions of the cooperative with the members 67.
The income of a cooperative from transactions with the members shall be recognized in the amount of the gross participation.
68.
A gross participation is basically the sale of goods/services to the member. In the activity of providing goods and services to the members, the gross participation is calculated on the price of service obtained or paid by the member, which covers basic expenses and net participation. In the activity of marketing the production of the members, gross participation is calculated on the selling expenses of the members’ production, either to non-members or to members.
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69.
The income of the cooperative originating from transactions with nonmembers shall be recognized as revenue (sale) and shall be reported separately from members’ participation in the report of the calculation of the operating result in the amount of the transaction value. The difference between revenue and basic expenses of the transaction with non-members shall be recognized as gross profit or loss from non-members.
70.
In the event a cooperative has excess capacity after servicing its members, the cooperative can utilize the excess capacity for non-members. In this case, the cooperative has entered the free market and the function of the cooperative is the same as other business entities. The cooperative can use a motivation to obtain maximum profit to the extent the customers are in the free market.
71.
As the financial report of a cooperative must reflect the objective of the cooperative, the calculation of operating result must clearly show the business activities of the cooperative with its members. Therefore revenues from members shall be presented separately from revenues originating from transactions with non-members. Such presentation will more reflect the fact that the cooperative places more importance to the transactions with or services to its members than to non-members.
72.
Operating expenses and cooperative expenses must be presented separately in the report of the calculation of operating result.
73.
In enhancing the welfare of the members, a cooperative not only functions to performs business activities, which provide an economic benefit or profit to the members, but must also perform another function to increase the capability of the member’s resources, either on a specific basis or the cooperative resources on a national basis. These activities are not performed by other business entities. Expenses incurred for those activities are referred to as cooperative expenses. Included under these expenses are among other members’ training expenses, expenses for development of members’ businesses, and contribution expenses for the cooperative movement (Council of the Indonesian Cooperatives).
FINANCIAL STATEMENTS OF THE COOPERATIVE 74.
The financial statements of a cooperative cover the Balance Sheet, calculation of the operating result, Cash Flow Report, Report on the Promotion of members’ economy and the notes to the Financial Statements.
Balance Sheet 75.
The balance sheet presents information regarding the assets, liabilities and equity of the cooperative at a certain time.
Calculation of Operating Result (PHU)
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76.
The calculation of operating result must contain the operating result from transactions with members and the gross profit or loss from transactions with non-members.
77.
The calculation of operating result presents information regarding revenues and operating expenses and cooperative expenses during a certain period. The calculation of operating result presents the end result which is called the balance of operating result. The balance of operating result obtained covers operating result from transactions with members and the gross profit or loss from transactions with non-members. The term calculation of operating result if used considering that the benefit of the cooperative’s business is not solely measured by the balance of operating result or profit, but is more determined by the benefit to the members.
Cash Flow Report 78.
The cash flow report presents information regarding changes in cash covering the opening balance of cash, sources of cash receipts, cash disbursements and the ending cash balance at the end of a certain period.
Report on the Promotion of members’ economy 79.
In the event the balance of operating result for the current year has not been distributed yet, the economic benefit obtained by the members from the distribution of the operating result at the end of the bookyear can be recorded at the estimated balance of the operating result at the end of the bookyear, which will be distributed to the members.
80.
The report on the promotion of members’ economy is a report showing the economic benefit obtained by the members of the cooperative during a certain year. The report covers four components, namely :
81.
82.
a. the economic benefit from the joint purchases of goods or providing of services b. the economic benefit from joint marketing and processing c. the economic benefit from saving and borrowing through the cooperative d. the economic benefit in the form of the distribution of the balance of the operating result . The benefits cover the benefits obtained during the current year from transactions of services performed by the cooperative for its members and the benefit obtained at the end of the year from the distribution of the balance of the operating result for the current year. The report on the promotion of members’ economy shall be adjusted to the types of the cooperative and the business conducted. The balance of the operating result must be distributed in accordance with the provisions of the budget and the by-law of the cooperative. The portion of the balance of operating result for the members represents the economic benefit
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obtained by the members at the end of the bookyear. In the event the balance of the operating result is not distributed yet, because the distribution of which is not clearly regulated in the Articles of Incorporation or the by-law and must wait for a decision of the members’ meeting, the economic benefit obtained from the distribution of the balance of the operating result can be recorded based on the estimated amount of the portion of the balance of operating result which will be received by the members.
Notes on the Financial Statements 83.
The notes on the Financial Statements present disclosures containing : a.
Accounting treatments among other regarding : 1. Recognition of revenues and expenses relating to the transactions of the cooperative with the members and non-members. 2. Accounting policies on fixed assets, inventory valuation, receivables, etc. 3. The basis for pricing of services to members and non-members.
b.
Disclosure of information, among others : 1. The activities or main services of the cooperative to the members, either those contained in the Article of Incorporation, the by law or in practice or what have been achieved by the cooperative. 2. The activities of the cooperative in developing resources and promoting the economic activities of the members, education and training on cooperatives, management performed for the members and creation of new business opportunities for the members. 3. Conditional commitments or obligations resulting from transactions of the cooperative with the members and non-members 4. Classification of receivables and payables arising from transactions of the cooperative with the members and non-members. 5. Restrictions on the use and the risks of fixed assets obtained as a gift or donation. 6. Assets operated by but not owned by the cooperative. 7. Assets obtained as a gift in the form of transfer of shares of a private company 8. Distribution of the balance of operating result and the use of reserve. 9. The right and obligation of the provider of participating capital. 10. The organization of the members’ meeting and important decisions affecting the accounting treatment and presentation of the financial statements.
EFFECTIVE DATE
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84.
SFAS No. 27 (1998 revision)
This statement becomes effective for financial statements beginning with or after 1 January, 1999.
ATTACHMENT The attachment is only an illustration and is not part of the statement of the Financial Accounting Standard. The purpose of the attachment is to illustrate the application of this statement. The sequence of presentation and descriptions can be changed, if required, in accordance with the conditions of each cooperative, so that the financial statements can be properly presented.
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ASSETS
SFAS No. 27 (1998 revision)
PEOPLE’S DEVELOPMENT COOPERATIVE BALANCE SHEET 31 December 19x1 and 19x0 19X1
CURRENT ASSETS Cash on Hand and in Banks Short Term Investments Receivables Loan receivables - members Loan receivables - non members Other receivables Allowance for non-collectible receivables Inventories Accrued income receivables Total Current Assets LONG TERM INVESTMENTS Participation in Cooperatives Participation in non-cooperatives Total Long Term Investments FIXED ASSETS Land/Right on Land Buildings Machineries Equipment Accumulated Depreciation Total Fixed Assets OTHER ASSETS Fixed Assets under Construction Deferred charges Total other assets TOTAL ASSETS
19X0
xxxx xxxx
xxxx xxxx
xxxx xxxx xxxx (xxxx) xxxx xxxx xxxx
xxxx xxxx xxxx (xxxx) xxxx xxxx xxxx
xxxx xxxx xxxx
xxxx xxxx xxxx
xxxx xxxx xxxx xxxx (xxxx) xxxx
xxxx xxxx xxxx xxxx (xxxx) xxxx
xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx ====================
LIABILITIES AND EQUITY
19X1
19X0
SHORT TERM LIABILITIES Trade Payables Bank Loan Tax Payables Members’ contributions Balance of operating result payable
xxxx xxxx xxxx xxxx xxxx
xxxx xxxx xxxx xxxx xxxx
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Long Term Debt due within one year Accrued Expenses Payables Total Current Liabilities
SFAS No. 27 (1998 revision)
xxxx xxxx xxxx
xxxx xxxx xxxx
LONG TERM LIABILITIES Bank Loan Other Long Term Liabilities Total Long Term Liabilities
xxxx xxxx xxxx
xxxx xxxx xxxx
EQUITY Obligatory contributions Principal contributions Equalizing Capital - members’ participation Participating capital Donated capital Reserve Undistributed Balance of Operating Result Total Equity
xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx
xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx
TOTAL LIABILITIES AND EQUITY
xxxx xxxx =======================
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PEOPLE’S DEVELOPMENT COOPERATIVE REPORT ON THE PROMOTION OF MEMBERS’ ECONOMY For the years ended 30 December 19x1 and 19x0 (Producers’ cooperative) ECONOMIC PROMOTION DURING THE CURRENT YEAR ECONOMIC BENEFIT FROM MARKETING OF MEMBERS’ PRODUCTS Marketing of members’ products based on market prices Marketing of members’ products based on cooperative prices Total Economic Promotion from Marketing transactions of members’ products
19x1
19x0
Rp. xxxx
Rp. xxxx
(xxxx)
(xxxx)
Rp. xxxx Rp. xxxx ====================
ECONOMIC BENEFIT FROM THE ACQUISITION OF GOODS FOR MEMBERS Acquisition of Goods based on Market Prices Rp. xxxx Rp. xxxx Acquisition of Goods based on Cooperative Prices (xxxx) (xxxx) Total Economic Promotion from transactions of goods acquisition for members Rp. xxxx Rp. xxxx ==================== ECONOMIC BENEFIT FROM PROVIDING SERVICES FOR MEMBERS Services provided based on Market Prices Rp. xxxx Rp. xxxx Services provided based on Cooperative Prices (xxxx) (xxxx) Total Economic Promotion from transactions of providing services for members Rp. xxxx Rp. xxxx ==================== Total Economic Promotion During the Current Year Rp. xxxx Rp. xxxx ECONOMIC PROMOTION AT THE END OF THE YEAR Distribution of the Balance of the Operating Result for the Current year for members Rp. xxxx Rp. xxxx Total Economic Promotion for members Rp. xxxx Rp. xxxx ==================== PEOPLE’S DEVELOPMENT COOPERATIVE CALCULATION OF OPERATING RESULT For the years ended 30 December, 19x1 and 19x0
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19x1 MEMBERS’ PARTICIPATION Gross members’ participation Basic Expenses Net members’ participation REVENUES FROM NON-MEMBERS Sales Cost of Sales Profit (Loss) from non-members Balance of Gross Operating Result OPERATING EXPENSES Business Expenses Balance of Cooperative’s operating result Cooperative’s Expenses Balance of operating result after cooperative expenses Other Income and Expenses Balance of Operating Result before Extra ordinary Items Extra ordinary Income and Expenses Balance of operating result before tax Income Tax Balance of Operating Result after tax
19x0
Rp.
xxxx Rp. xxxx (xxxx) (xxxx) Rp. xxxx Rp. xxxx ========================= Rp. Rp. Rp.
Rp.
xxxx (xxxx) xxxx xxxx
Rp. xxxx (xxxx) Rp. xxxx Rp. xxxx
(xxxx)
(xxxx)
xxxx (xxxx)
xxxx (xxxx)
xxxx xxxx
Rp. xxxx xxxx
Rp.
xxxx Rp. xxxx xxxx xxxx Rp. xxxx Rp. xxxx (xxxx) (xxxx) Rp. xxxx Rp. xxxx =========================
PEOPLE’S DEVELOPMENT COOPERATIVE REPORT ON THE PROMOTION OF MEMBERS ECONOMIC For the years ended 31 December, 19x1 and 19x0 (Consumers’ Cooperative)
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ECONOMIC PROMOTION DURING THE CURRENT YEAR
19x1
19x0
ECONOMIC BENEFIT FROM MARKETING MEMBERS’ PRODUCTS Marketing of members’ products based on cooperative prices Rp. xxxx Rp. xxxx Marketing of members’ products based on market prices (xxxx) (xxxx) Total Economic promotion from marketing transactions of members’ products Rp. xxxx Rp. xxxx ======================== ECONOMIC BENEFIT FROM THE ACQUISITION OF GOODS FOR MEMBERS Acquisition of Goods based on Market Prices Rp. xxxx Rp. xxxx Acquisition of Goods based on Cooperative Prices (xxxx) (xxxx) Total Economic Promotion from the transactions of goods acquisition for members Rp. xxxx Rp. xxxx ======================== ECONOMIC BENEFIT FROM SAVING AND BORROWING THROUGH THE COOPERATIVE Saving of members’ loan expenses Rp. xxxx Rp. xxxx Excess of compensation on members’ savings (xxxx) (xxxx) Total Economic Promotion from transactions of providing services for members Rp. xxxx Rp. xxxx ======================== Total Economic Promotion for members during the current year Rp. xxxx Rp. xxxx ECONOMIC PROMOTION AT THE END OF THE YEAR Distribution of the Balance of Operating result for the Current year to members Total Economic Promotion for members
Rp. Rp.
xxxx xxxx
Rp. Rp.
xxxx xxxx
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SFAS No. 27 (1998 revision)
Page 19
SFAS No. 27 (1998 revision)
STATEMENT OF FINANCIAL ACCOUNTING STANDARD NO. 27 (1998 REVISION) ACCOUNTING OF COOPERATIVES Paragraphs printed in bold letters are standard paragraphs, which must be read in the context of the explanatory paragraphs and implementation guidance printed in normal letters. There is no requirement to apply this statement of Financial Accounting Standard-Accounting of Cooperatives on items considered to be immaterial. PREFACE Characteristics of a Cooperative 01.
A cooperative is an entity, which organizes the utilization and efficient usage of the economic resources of its members based on the principles of a Cooperative and the norms of economic efforts to increase the living condition of its members in particular and the community in which its operates in general. Accordingly, a cooperative is a people’s economic movement and the main pillar of the national economy.
02.
The principles of a cooperative constitute the basic ground for a cooperative to conduct its business as an entity and people’s economic movement. These principles comprise: stand alone, open membership, democratic management, the distribution of the net operating result is made on an equitable basis proportionate to the contribution of each member, a limited compensation on capital, cooperative education and cooperation between cooperatives.
03.
The main characteristic of a cooperative, which differentiates it from other entities is that the member of a cooperative has a dual identity, namely as an owner and at the same time as user of the cooperative’s services (user own oriented firm). Therefore : a. A cooperative is owned by members who are participating based on at least one of the same economic interests. b. A cooperative is established and developed based on the self confidence value to help and be responsible to oneself, solidarity, justice equality and democracy. In addition, members of a cooperative believe in the value of the ethics of honesty, openness, social responsibility and care for others. c. A cooperative is established, provided with capital, financed, managed, supervised and utilized by its own members. d. The main task of a cooperative is to support the economic interest of its members in the framework of promoting the members’ welfare. e. If there is an excess service capacity of the cooperative for its members, the excess service capacity may be used to meet the need of the community who are non-members of the cooperative.
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04.
In promoting the welfare of its members, a cooperative is not only required to promote the economic efforts of its members, but also to develop the members’ resources through continuous and higher education, so that the members will become more professional and will be able to keep up with the development of their business activities.
05.
As the activator of the people’s economy and the main pillar of the national economy, the government has a very strong interest in the success of the cooperatives. Accordingly, the government plays an important role in the development, protection and providing business opportunities to the cooperatives. With respect to the development, protection and providing business opportunities, the cooperatives must be guided by the provisions stipulated by the government. These provisions affect the accounting treatment of the cooperatives.
The structure of organization of a Cooperative 06.
The cooperatives are divided into Primary and Secondary Cooperatives. A primary cooperative is a cooperative with individual membership. A secondary cooperative is a cooperative, the members of which are cooperative legal bodies.
07.
The amount of member’s ownership in a cooperative, either in a primary or secondary cooperative, is in principle the same. Therefore, there is no majority and minority ownership in a cooperative. Accordingly the financial statements of a primary and secondary cooperatives are not consolidated.
The business and types of Cooperatives 08.
A cooperative can conduct businesses as any other entities, such as in the trade sector, in the manufacturing industry, financial services and financing, insurance services, transportation services, professional services and other services. The accounting treatment of the cooperatives shall refer to the statement of the financial accounting standard which regulated the accounting treatment in each of the sector of industry.
09.
Cooperatives can be categorized into several types. However, based on the interest of the members and the main business of the cooperatives, they are categorized into four types, namely consumer cooperatives, producer cooperatives, saving and borrowing cooperatives and marketing cooperatives.
Objective 10.
The objective of this statement is to regulate the accounting treatment arising from transaction relationship between the cooperative and its members and other specific transactions of a cooperative. This statement covers the regulations on the recognition measurement, presentation and disclosures in the financial statements.
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Scope 11.
This statement regulates the accounting of cooperative entities for transactions arising from the cooperative’s relations with its members, namely transaction of the contribution of the members of the cooperative, business transactions of the cooperative with its members, and other specific transactions in a cooperative entity, among other reserves, capital participation, capital donations, expenses of the cooperative, and the presentation and disclosures in the financial statements.
12.
This statement does not regulate transactions arising from the cooperative’s relations with non-members. Such transactions shall be treated the same as transactions occurring in other business entities.
13.
Matters of a general nature or which are not specifically regulated in this statement, including accounting of transactions for an autonomous business unit of a cooperatives, shall be treated with reference to the other statements of Financial Accounting Standards.
14.
This statement is applicable to financial statements for presentation to external parties, namely the members of the cooperative, the government, creditor and other interested parties.
15.
The government as one of the parties using the financial statements of a cooperative, may require specific information for certain purposes. This statement does not regulate the presentation of report for the government. The presentation of the specific information is regulated in a separate accounting guidance referring to this statement.
16.
Various types of cooperatives, for example Consumer Cooperatives, Producer Cooperatives, Saving and Borrowing Cooperatives and Marketing Cooperatives may show their own specific characteristics in the presentation of their financial statements, and this can be regulated in a separate accounting guidance referring to this statement.
Definitions The followings are definitions of terms used in this statement. 17.
Cooperative is a business entity, the members of which are individual persons or cooperative legal bodies basing its activities on the principles of a Cooperative and at the same time as a people’s economic movement based on the family principle.
18.
Member of a cooperative is the owner and at the same the user of the cooperative services, who has paid in full the stipulated principal contribution.
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19.
Consumer cooperative is a cooperative, the members of which are the end consumers or the users of goods or services, and the main activity or service is to make collective purchases. An example of a consumer cooperative is a cooperative, the main activity of which is managing a retail shop or a supermarket.
20.
Producer cooperative is a cooperative, the members of which do not have a household or an enterprise of their own but work together under the umbrella of a cooperative to produce and market goods or services and its main activity is to provide, operate and manage a production facility jointly. An example of a Producer cooperative is a Consulting Services Cooperative.
21.
Saving and borrowing cooperative is a cooperative, the main activity or the main service of which is to provide saving and borrowing services to its members.
22.
Marketing cooperative is a cooperative, the members of which are producers, owner of goods or provider of services and its main activity or service is to perform joint marketing.
23.
Principal contribution is the equal amount of money and or equal value of money, which must be paid by a member to the cooperative at the time he becomes a member. The principal contribution cannot be withdrawn as long as the individual is a member.
24.
Obligatory contribution is a certain contribution, which does not have to be equal in amount, that must be paid by a member to the cooperative in a certain time and opportunity. An obligatory contribution cannot be withdrawn as long as the individual is a member.
25.
Member’s capital is the principal contributions and obligatory contribution which must be paid by a member to the cooperative in accordance with the prevailing provisions in the cooperative. Each member has the same voting right, regardless of the amount of his member’s capital in the cooperative.
26.
Donated capital is the amount of money or capital good, which can be valued in money received from other parties as a gift and is not binding. A donated capital cannot be distributed to the members until the cooperative is dissolved.
27.
Participating capital is the amount of money or capital goods, which can be valued in money invested by the investor to add and strengthen the capital structure in enhancing the business of the cooperative.
28.
Reserve is part of balance of the operating result set aside in accordance with the provisions of the Articles of Association or a decision of the members’ meeting.
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29.
Gross participation is the members’ contribution to the cooperative as compensation for the deliveries of goods and services to the members, which includes cost of sales and net participation.
30.
Net participation is the members’ contribution to the operating result of the cooperative, which represents the difference between gross participation and basic expenses.
31.
Revenues from non-members are sales of good/services to non-members.
32.
Cooperative’s burden are expenses related to the cooperative movements which are not related to the business activities.
33.
Balance of Operating Result is the combination of the results of net participation and the gross profit or loss with non-members, plus or minus other income and expenses and the cooperative’s burden and the income tax of the cooperative body.
34.
Promotion of members’ economy is the enhancement of the cooperative services to its members in the form of economic benefit obtained as a member of the cooperative.
35.
Autonomous Activity Unit is part of the organization that stand alone which specific activities and members in a cooperative, so that the autonomous activity unit is equal to an accounting entity. For example, a village unit cooperative (KUD) has an autonomous activity unit for saving and borrowing, an autonomous activity unit for consumers and an autonomous activity unit for distribution. EXPLANATION EQUITY 36.
The equity of a cooperative comprises the members capital in the form of principal contributions with the same characteristics of the principal contribution or obligatory contribution, participating capital, donated capital, reserve and the balance of operating results. Members’ capital 37.
The principal contribution, obligatory contributions with the same characteristics of the principal contribution or obligatory contribution shall be recognized as the equity of the cooperative and shall be recorded at their nominal values.
38.
Formally, a member shall be recognized as a member of the cooperative, if he has deposited a certain amount of money as principal contribution at the time he becomes a member for the first time. In addition, he must also deposit a certain amount of money on a periodic basis as obligatory contributions.
39.
The principal contribution is an equal amount of money, which must be paid by a member to the cooperative at the time he becomes a member. The obligatory contribution is a certain amount of contribution, which does not have to be the
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same, that must be paid by a member to the cooperative curing a certain period and opportunity. 40.
The principal and obligatory contributions function as a risk coverage and therefore cannot be withdrawn as long as the individual is still a member. An obligatory contribution which is related to the member’s loan and other types of obligatory contributions, which in practice can be withdrawn after the loan is settled or at certain times, cannot be recognized as equity.
41.
Although the principal and obligatory contributions can be withdrawn, if the individual resign from the membership of the cooperative, it is however assumed that a member of the cooperative will remain to be a member for an unlimited period of time. Therefore, the principal and obligatory contributions are permanent in nature.
42.
Principal and obligatory contributions which have not been received shall be presented as receivables of principal and obligatory contributions.
43.
The payments of principal and obligatory contributions can be made in installments, the amounts and the period of which shall be determined in the articles of incorporation or other provisions. The presentation of the values of principal and obligatory contributions on the balance sheet shall be by presenting the nominal values of the principal and obligatory contributions. The amounts of principal and obligatory contributions which have not been received yet from the members shall be presented as receivables of principal and obligatory contributions.
44.
Any excess of deposits for principal and obligatory contributions from new members over the nominal value of the principal and obligatory contributions from founder members shall be recognized as equalizing capital of member participation.
45.
The members’ meeting can determine the amounts of deposits for principal and for obligatory contributions for new members, who join the cooperative later, the amounts of which shall be equal to the amounts of principal and obligatory contributions for founder members. If there is an excess over the nominal value of the principal and obligatory contributions for founder members, such excess shall be recognized as equalizing capital of member participation. This capital is not owned by the depositor member, and therefore cannot be withdrawn at the time the member resigns from the cooperative’s membership.
46.
If the cooperative also determines another contribution other than the principal and obligatory contributions as equity, then any excess of contributions over the nominal value of the contribution by a new member shall also be recognized as equalizing capital of member participation.
Participating Capital 47.
Participating capital is recognized as equity and shall be recorded at the deposited nominal amount. In case the participating capital is received in the
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form other cash, the participating capital shall be valued at the market price prevailing at the time of receipt. 48.
A participating capital shares to cover the risk of losses and has a relatively permanent nature. Compensation to the capital provider will be based on the results obtained. Therefore, participating capital is recognized as equity.
49.
A participating capital shall be recorded at the nominal value, and in case the participating capital is received in the form other than cash, the participating capital shall be recorded at the market price prevailing at the time of receipt. If a market price is not available, an estimated price may be used. Sufficient explanation must be disclosed in the notes to the financial statements on the valuation made.
50.
The provisions regarding the agreement with the capital provider relating to the distribution of profit or operating result, the sharing of losses, time period and the rights of the capital provider must be explained in the notes to the financial statements.
Donated capital 51.
Donated capital received by a cooperative which can be used to cover losses, shall be recognized as equity, while donated capital, which in substance represents a loan shall be recognized as a long term debt. This should be explained in the notes to the financial statements.
52.
As the cooperatives are carrying out a national mission to activate the people’s economy and functions as the main pillar of the national economy, they may receive donations from the government or other parties. These donations shall be recognized as equity, if they can be used to cover the risk of losses.
53.
Sometime a donation is received by a cooperative under a restricted condition, so that the donation is in essence a loan. Such donation cannot be recognized as equity, but must be recognized as other long term debt and explained in the notes to the financial statements.
Reserves 54.
A reserve and the purpose of its use must be explained in the notes to the financial statements.
55.
The creation of a reserve can be directed, among other for the development of the business of the cooperative, to cover the risk of losses and for distribution to members who resign from the cooperative’s membership. A reserve established from the balance of the operating results shall be recorded in a reserve account. The purpose of the use of the reserve must be explained in the notes to the financial statements.
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56.
Additional payments made to members who resign from the cooperative membership over the principal and obligatory contributions and other contributions shall be charged to the reserve.
57.
A reserve, which is established from the balance of the operating results obtained each book year intended for the accumulation of capital to be used for the business development and to cover the risk of loss, represents part of the equity. As part of the equity, the reserve will affect the net worth of the cooperative, which reflects the value of the members’ ownership in the cooperative. Accordingly, a cooperative can determine an additional payment in an amount proportionate to the value of the net worth of the cooperative or a certain amount determined in the members’ meeting to a member, who resigns from the cooperative membership during the current year, in addition to the refund of the principal, obligatory and other contributions at the nominal values. The additional payment shall be charged to the reserve of the cooperative.
Balance of Operating result 58.
59.
60.
The balance of the operating result shall be distributed in accordance with the provisions in effect in the cooperative. In the event, the types and the amount to be distributed have already been regulated clearly, the portion that is not the right of the cooperative shall be recognized as a liability. If the types and the amount to be distributed have not been clearly regulated yet, the balance of the operating result shall be recorded as undistributed balance of the operating result, which must be explained in the notes to the financial statements. It is usual in a cooperative, that the balance of the operating result for the current year is distributed in accordance with the provisions of the Articles of Incorporation or the by-law. The requirement to distribute the balance of the operating result is also stated in the Law on Cooperatives. The balance of the operating result is distributed among other to the members, educational fund, and to the cooperative itself. The amount, which represents the right of the cooperative shall be recognized as reserve. The distribution of the balance of the operating result shall be made at the end of the accounting period. The amounts allocated other than to the cooperative shall be recognized as liabilities. In the event a distribution cannot be made, because the types and the amounts to be distributed have not been clearly regulated yet in the Articles of Incorporation or the by-Law, but must wait for a decision of the members’ meeting, the balance of the operating result shall be recorded as an undistributed balance of operating result and must be explained in the notes to the financial statements.
LIABILITIES 61.
Members’ contributions with no characteristics of an equity shall be recognized as short term or long term liabilities in accordance with the maturity dates and shall be recorded at their nominal values.
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62.
SFAS No. 27 (1998 revision)
Members’ contributions with an equity characteristic are certain amounts in money value transferred by the members to the cooperative at their own will as a deposit, which can be withdrawn at any time in accordance with the agreement. These deposits do not bear the risk of losses and are temporary in nature, and therefore are recognized as liabilities.
ASSETS 63.
Assets obtained from donations, the use of which are restricted and cannot be sold to cover losses of the cooperative are recognized as other assets. The type of restriction applicable to the use of the assets shall be explained in the notes to the financial statements.
64.
As an activator of the people’s economy and the main pillar of the national economy, a cooperative often receives assistance from various parties in the form of gift or donation of capital goods to conduct its business. Such capital goods can be recognized as fixed assets owned by the cooperative, although the fixed assets cannot be sold to cover the risk of losses. In the event the fixed asset cannot be used to cover the risk of losses as conditioned by the donor or as stipulated in the deed of the donation, the fixed asset shall be classified as other asset. The type of restriction applicable to the use of the asset shall be explained in the notes to the financial statements.
65.
Assets managed by the cooperative, but which are not owned by the cooperative shall not be recognized as assets and must be explained in the notes to the financial statements.
66.
The members’ meeting of the cooperative can approve a fund raising from the members to be used for a certain purpose in line with the members’ interest. Such fund is owned by the members, the management of which is entrusted to the cooperative, for example a fund for the maintenance of road and rejuvenation of plantation. Such fund is not recognized as the asset of the cooperative. However, the fund must be accounted for separately by the cooperative, as the management of the fund. The existence of such fund must be explained in the notes to the financial statements.
INCOME AND EXPENSES Business transactions of the cooperative with the members 67.
The income of a cooperative from transactions with the members shall be recognized in the amount of the gross participation.
68.
A gross participation is basically the sale of goods/services to the member. In the activity of providing goods and services to the members, the gross participation is calculated on the price of service obtained or paid by the member, which covers basic expenses and net participation. In the activity of marketing the production of the members, gross participation is calculated on the selling expenses of the members’ production, either to non-members or to members.
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69.
The income of the cooperative originating from transactions with nonmembers shall be recognized as revenue (sale) and shall be reported separately from members’ participation in the report of the calculation of the operating result in the amount of the transaction value. The difference between revenue and basic expenses of the transaction with non-members shall be recognized as gross profit or loss from non-members.
70.
In the event a cooperative has excess capacity after servicing its members, the cooperative can utilize the excess capacity for non-members. In this case, the cooperative has entered the free market and the function of the cooperative is the same as other business entities. The cooperative can use a motivation to obtain maximum profit to the extent the customers are in the free market.
71.
As the financial report of a cooperative must reflect the objective of the cooperative, the calculation of operating result must clearly show the business activities of the cooperative with its members. Therefore revenues from members shall be presented separately from revenues originating from transactions with non-members. Such presentation will more reflect the fact that the cooperative places more importance to the transactions with or services to its members than to non-members.
72.
Operating expenses and cooperative expenses must be presented separately in the report of the calculation of operating result.
73.
In enhancing the welfare of the members, a cooperative not only functions to performs business activities, which provide an economic benefit or profit to the members, but must also perform another function to increase the capability of the member’s resources, either on a specific basis or the cooperative resources on a national basis. These activities are not performed by other business entities. Expenses incurred for those activities are referred to as cooperative expenses. Included under these expenses are among other members’ training expenses, expenses for development of members’ businesses, and contribution expenses for the cooperative movement (Council of the Indonesian Cooperatives).
FINANCIAL STATEMENTS OF THE COOPERATIVE 74.
The financial statements of a cooperative cover the Balance Sheet, calculation of the operating result, Cash Flow Report, Report on the Promotion of members’ economy and the notes to the Financial Statements.
Balance Sheet 75.
The balance sheet presents information regarding the assets, liabilities and equity of the cooperative at a certain time.
Calculation of Operating Result (PHU)
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76.
The calculation of operating result must contain the operating result from transactions with members and the gross profit or loss from transactions with non-members.
77.
The calculation of operating result presents information regarding revenues and operating expenses and cooperative expenses during a certain period. The calculation of operating result presents the end result which is called the balance of operating result. The balance of operating result obtained covers operating result from transactions with members and the gross profit or loss from transactions with non-members. The term calculation of operating result if used considering that the benefit of the cooperative’s business is not solely measured by the balance of operating result or profit, but is more determined by the benefit to the members.
Cash Flow Report 78.
The cash flow report presents information regarding changes in cash covering the opening balance of cash, sources of cash receipts, cash disbursements and the ending cash balance at the end of a certain period.
Report on the Promotion of members’ economy 79.
In the event the balance of operating result for the current year has not been distributed yet, the economic benefit obtained by the members from the distribution of the operating result at the end of the bookyear can be recorded at the estimated balance of the operating result at the end of the bookyear, which will be distributed to the members.
80.
The report on the promotion of members’ economy is a report showing the economic benefit obtained by the members of the cooperative during a certain year. The report covers four components, namely :
81.
82.
a. the economic benefit from the joint purchases of goods or providing of services b. the economic benefit from joint marketing and processing c. the economic benefit from saving and borrowing through the cooperative d. the economic benefit in the form of the distribution of the balance of the operating result . The benefits cover the benefits obtained during the current year from transactions of services performed by the cooperative for its members and the benefit obtained at the end of the year from the distribution of the balance of the operating result for the current year. The report on the promotion of members’ economy shall be adjusted to the types of the cooperative and the business conducted. The balance of the operating result must be distributed in accordance with the provisions of the budget and the by-law of the cooperative. The portion of the balance of operating result for the members represents the economic benefit
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obtained by the members at the end of the bookyear. In the event the balance of the operating result is not distributed yet, because the distribution of which is not clearly regulated in the Articles of Incorporation or the by-law and must wait for a decision of the members’ meeting, the economic benefit obtained from the distribution of the balance of the operating result can be recorded based on the estimated amount of the portion of the balance of operating result which will be received by the members.
Notes on the Financial Statements 83.
The notes on the Financial Statements present disclosures containing : a.
Accounting treatments among other regarding : 1. Recognition of revenues and expenses relating to the transactions of the cooperative with the members and non-members. 2. Accounting policies on fixed assets, inventory valuation, receivables, etc. 3. The basis for pricing of services to members and non-members.
b.
Disclosure of information, among others : 1. The activities or main services of the cooperative to the members, either those contained in the Article of Incorporation, the by law or in practice or what have been achieved by the cooperative. 2. The activities of the cooperative in developing resources and promoting the economic activities of the members, education and training on cooperatives, management performed for the members and creation of new business opportunities for the members. 3. Conditional commitments or obligations resulting from transactions of the cooperative with the members and non-members 4. Classification of receivables and payables arising from transactions of the cooperative with the members and non-members. 5. Restrictions on the use and the risks of fixed assets obtained as a gift or donation. 6. Assets operated by but not owned by the cooperative. 7. Assets obtained as a gift in the form of transfer of shares of a private company 8. Distribution of the balance of operating result and the use of reserve. 9. The right and obligation of the provider of participating capital. 10. The organization of the members’ meeting and important decisions affecting the accounting treatment and presentation of the financial statements.
EFFECTIVE DATE
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84.
SFAS No. 27 (1998 revision)
This statement becomes effective for financial statements beginning with or after 1 January, 1999.
ATTACHMENT The attachment is only an illustration and is not part of the statement of the Financial Accounting Standard. The purpose of the attachment is to illustrate the application of this statement. The sequence of presentation and descriptions can be changed, if required, in accordance with the conditions of each cooperative, so that the financial statements can be properly presented.
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Accounting of Cooperatives
ASSETS
SFAS No. 27 (1998 revision)
PEOPLE’S DEVELOPMENT COOPERATIVE BALANCE SHEET 31 December 19x1 and 19x0 19X1
CURRENT ASSETS Cash on Hand and in Banks Short Term Investments Receivables Loan receivables - members Loan receivables - non members Other receivables Allowance for non-collectible receivables Inventories Accrued income receivables Total Current Assets LONG TERM INVESTMENTS Participation in Cooperatives Participation in non-cooperatives Total Long Term Investments FIXED ASSETS Land/Right on Land Buildings Machineries Equipment Accumulated Depreciation Total Fixed Assets OTHER ASSETS Fixed Assets under Construction Deferred charges Total other assets TOTAL ASSETS
19X0
xxxx xxxx
xxxx xxxx
xxxx xxxx xxxx (xxxx) xxxx xxxx xxxx
xxxx xxxx xxxx (xxxx) xxxx xxxx xxxx
xxxx xxxx xxxx
xxxx xxxx xxxx
xxxx xxxx xxxx xxxx (xxxx) xxxx
xxxx xxxx xxxx xxxx (xxxx) xxxx
xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx ====================
LIABILITIES AND EQUITY
19X1
19X0
SHORT TERM LIABILITIES Trade Payables Bank Loan Tax Payables Members’ contributions Balance of operating result payable
xxxx xxxx xxxx xxxx xxxx
xxxx xxxx xxxx xxxx xxxx
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Accounting of Cooperatives
Long Term Debt due within one year Accrued Expenses Payables Total Current Liabilities
SFAS No. 27 (1998 revision)
xxxx xxxx xxxx
xxxx xxxx xxxx
LONG TERM LIABILITIES Bank Loan Other Long Term Liabilities Total Long Term Liabilities
xxxx xxxx xxxx
xxxx xxxx xxxx
EQUITY Obligatory contributions Principal contributions Equalizing Capital - members’ participation Participating capital Donated capital Reserve Undistributed Balance of Operating Result Total Equity
xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx
xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx
TOTAL LIABILITIES AND EQUITY
xxxx xxxx =======================
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PEOPLE’S DEVELOPMENT COOPERATIVE REPORT ON THE PROMOTION OF MEMBERS’ ECONOMY For the years ended 30 December 19x1 and 19x0 (Producers’ cooperative) ECONOMIC PROMOTION DURING THE CURRENT YEAR ECONOMIC BENEFIT FROM MARKETING OF MEMBERS’ PRODUCTS Marketing of members’ products based on market prices Marketing of members’ products based on cooperative prices Total Economic Promotion from Marketing transactions of members’ products
19x1
19x0
Rp. xxxx
Rp. xxxx
(xxxx)
(xxxx)
Rp. xxxx Rp. xxxx ====================
ECONOMIC BENEFIT FROM THE ACQUISITION OF GOODS FOR MEMBERS Acquisition of Goods based on Market Prices Rp. xxxx Rp. xxxx Acquisition of Goods based on Cooperative Prices (xxxx) (xxxx) Total Economic Promotion from transactions of goods acquisition for members Rp. xxxx Rp. xxxx ==================== ECONOMIC BENEFIT FROM PROVIDING SERVICES FOR MEMBERS Services provided based on Market Prices Rp. xxxx Rp. xxxx Services provided based on Cooperative Prices (xxxx) (xxxx) Total Economic Promotion from transactions of providing services for members Rp. xxxx Rp. xxxx ==================== Total Economic Promotion During the Current Year Rp. xxxx Rp. xxxx ECONOMIC PROMOTION AT THE END OF THE YEAR Distribution of the Balance of the Operating Result for the Current year for members Rp. xxxx Rp. xxxx Total Economic Promotion for members Rp. xxxx Rp. xxxx ==================== PEOPLE’S DEVELOPMENT COOPERATIVE CALCULATION OF OPERATING RESULT For the years ended 30 December, 19x1 and 19x0
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19x1 MEMBERS’ PARTICIPATION Gross members’ participation Basic Expenses Net members’ participation REVENUES FROM NON-MEMBERS Sales Cost of Sales Profit (Loss) from non-members Balance of Gross Operating Result OPERATING EXPENSES Business Expenses Balance of Cooperative’s operating result Cooperative’s Expenses Balance of operating result after cooperative expenses Other Income and Expenses Balance of Operating Result before Extra ordinary Items Extra ordinary Income and Expenses Balance of operating result before tax Income Tax Balance of Operating Result after tax
19x0
Rp.
xxxx Rp. xxxx (xxxx) (xxxx) Rp. xxxx Rp. xxxx ========================= Rp. Rp. Rp.
Rp.
xxxx (xxxx) xxxx xxxx
Rp. xxxx (xxxx) Rp. xxxx Rp. xxxx
(xxxx)
(xxxx)
xxxx (xxxx)
xxxx (xxxx)
xxxx xxxx
Rp. xxxx xxxx
Rp.
xxxx Rp. xxxx xxxx xxxx Rp. xxxx Rp. xxxx (xxxx) (xxxx) Rp. xxxx Rp. xxxx =========================
PEOPLE’S DEVELOPMENT COOPERATIVE REPORT ON THE PROMOTION OF MEMBERS ECONOMIC For the years ended 31 December, 19x1 and 19x0 (Consumers’ Cooperative)
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ECONOMIC PROMOTION DURING THE CURRENT YEAR
19x1
19x0
ECONOMIC BENEFIT FROM MARKETING MEMBERS’ PRODUCTS Marketing of members’ products based on cooperative prices Rp. xxxx Rp. xxxx Marketing of members’ products based on market prices (xxxx) (xxxx) Total Economic promotion from marketing transactions of members’ products Rp. xxxx Rp. xxxx ======================== ECONOMIC BENEFIT FROM THE ACQUISITION OF GOODS FOR MEMBERS Acquisition of Goods based on Market Prices Rp. xxxx Rp. xxxx Acquisition of Goods based on Cooperative Prices (xxxx) (xxxx) Total Economic Promotion from the transactions of goods acquisition for members Rp. xxxx Rp. xxxx ======================== ECONOMIC BENEFIT FROM SAVING AND BORROWING THROUGH THE COOPERATIVE Saving of members’ loan expenses Rp. xxxx Rp. xxxx Excess of compensation on members’ savings (xxxx) (xxxx) Total Economic Promotion from transactions of providing services for members Rp. xxxx Rp. xxxx ======================== Total Economic Promotion for members during the current year Rp. xxxx Rp. xxxx ECONOMIC PROMOTION AT THE END OF THE YEAR Distribution of the Balance of Operating result for the Current year to members Total Economic Promotion for members
Rp. Rp.
xxxx xxxx
Rp. Rp.
xxxx xxxx
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