Accounting in Social Economy formulas: Cooperative Societies

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Written by Carolina Domínguez Areta
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Cooperativism is characterized by promoting social values ​​based on cooperation and social responsibility, based mainly on the principles of democratic participation of members, free membership and commitment to the community, among other social values ​​and principles as described in the ICA (International Cooperative Alliance) .

Did you know that cooperatives have their own accounting regulations?
The accounting function in cooperative societies allows for the orderly recording of business activity operations, reflecting the economic, financial and asset situation, applying the general accounting standards and Order EHA/3360/2010 , of December 21, which approves the standards on the accounting aspects of cooperative societies.

The participation of the members in the decision-making of the morocco phone data company is one of the main characteristics of cooperatives, as well as the contribution of each of them to the share capital, not only through financial contributions at the start of the activity but also through other contributions that occur throughout the business activity, due to another of the cooperative principles which is the free adhesion and withdrawal of the members.

Characteristics of the Cooperative's Equity
All these circumstances mean that the cooperative must apply accounting regulations to the peculiarities of its operation, mainly through:

A specific chart of accounts, adapting those accounts related to the financial contributions of the members.
A specific provision for the creation of reserves, which affects both the company's net worth and liabilities.
It is therefore essential to know the specific accounts of the share capital, as well as the rules relating to the constitution of legal reserves, which in the cooperative have a specific percentage, higher than in traditional commercial companies, since they allocate a significant part of the surplus to guarantee the development of the activity.

Cooperative societies describe in their bylaws the conditions of each member , associate or worker, based on their financial contribution and contribution to society.

In this regard, and to understand the legislation on the specialties of constitution, administration and accounting, it is necessary to refer to the legal standards of reference within the framework of cooperativism: Law 27/1999, of July 16, on Cooperatives and the Cooperative Regulation (REC) RD 136/2002, in addition to the regional regulations and other European social legislation, which outline the social concepts of this type of society in each area of ​​application.

Knowing the applicable legislation, it is possible to identify, especially at the accounting and tax level, compliance with administrative, accounting and tax obligations in each Cooperative , depending on its activity and the characteristics of each association.