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Coop Updates 3 PDF
Coop Updates 3 PDF
FE D. CAINGLES, CPA
COOPERATIVE UPDATES
REVISED
IMPLEMENTING
RULES AND
REGULATIONS OF RA
9520
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Rule 10:
Capitalization and Accounting
Procedures of Cooperatives
RULE 10:
CAPITALIZATION AND ACCOUNTING
PROCEDURES OF COOPERATIVES
Capital Sources:
a. Members Share Capital
b. Loans and Borrowings including deposits
c. Revolving Capital
d. Subsidies, donations, legacies, grants, aids
and such other assistance from any local or
foreign institutions
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RULE 10:
CAPITALIZATION AND ACCOUNTING
PROCEDURES OF COOPERATIVES
Share Capital
The Share Capital of a cooperative may consist of common share capital
and preferred share capital;
The share capital contribution of the members shall be considered as equity.
It shall not be withdrawn and should not be used in offsetting obligations
whether past due or current.
RULE 10:
CAPITALIZATION AND ACCOUNTING
PROCEDURES OF COOPERATIVES
Subscription Agreement:
Upon admission of membership and;
Upon full payment of initial subscription
Par Value:
Should not be less than 100 but not more than 1,000 pesos
Multiple types of Common Shares with different par value per share is
prohibited
Increase/decrease the par value is likewise prohibited
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RULE 10:
CAPITALIZATION AND ACCOUNTING
PROCEDURES OF COOPERATIVES
RULE 10:
CAPITALIZATION AND ACCOUNTING
PROCEDURES OF COOPERATIVES
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RULE 10:
CAPITALIZATION AND ACCOUNTING
PROCEDURES OF COOPERATIVES
RULE 10:
CAPITALIZATION AND ACCOUNTING
PROCEDURES OF COOPERATIVES
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CDA ISSUANCES
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DEFINITION OF TERMS
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DEFINITION OF TERMS
DEFINITION OF TERMS
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DEFINITION OF TERMS
DEFINITION OF TERMS
Full Business Operation - shall refer to the
conduct of complete cycle of cooperative
business activity in consonance with the
purpose/s and scope of cooperative as provided
for in the articles of cooperation and by-laws.
Inspection Report - shall refer to the
documents where the findings/observations,
actions and recommendations of the CDA
authorized person who conducted the inspection
are summarized and presented.
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PRE-
PRE-QUALIFICATION REQUIREMENTS
Proposed Branch shall be within the are of
operations;
Minimum Paid up Capital
PRE-QUALIFICATION REQUIREMENTS
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PRE-QUALIFICATION REQUIREMENTS
DOCUMENTARY REQUIREMENTS
A letter request for authority to establish a
cooperative branch shall be signed by the
Chairman of the cooperative or General
Manager as authorized by the Board and
shall be accompanied by the following
information/documents:
1 .Business plan;
2. General assembly resolution authorizing
the establishment of the branch and
commitment of investment or allocation of
resources in its operation;
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DOCUMENTARY REQUIREMENTS
JURISDICTION
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JURISDICTION
RELOCATION/TRANSFER OF BRANCH OF
COOPERATIVES
Notice to CDA of relocation/transfer of branch at
least three (3) months before the actual transfer;
Posting of notice of relocation/transfer in
conspicuous place where the branch office is
located at least three (3) months prior to
scheduled relocation/transfer;
Payment of processing fee amounting to Php
500.00 for the issuance of new Certificate of
Authority upon surrender and cancellation of the
old certificate.
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ADMINISTRATIVE REGULATION
ADMINISTRATIVE REGULATION
No branch should be established within a 500-
meter radius of the nearest cooperative
engaged in the same line of business as the
proposed branch;
All branch offices should secure a Barangay and
Mayors Permit;
Submission of operational reports to the
principal/head office such as financial
statements, cash flows, and other relevant
reports required by the main office and the
Authority.
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QUALIFICATION REQUIREMENTS
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DOCUMENTARY REQUIREMENTS
ADDITIONAL REQUIREMENTS
Federations/Unions
- Cooperative Annual Progress Report (CAPR)
- Latest Audited Financial Statements
- Valid Certificate of Compliance (COC)
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VALIDITY OF ACCFEDITATION
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ACCREDITATION FEE
NGO/FEDERATIONS/UNIONS/TRAINING
INST/ ACADEME
INITIAL - PHP3,000.00
RENEWAL PHP5,000.00
GOVERNMENT ORGANIZATIONS
INITIAL - PHP1,500.00
RENEWAL - PHP2,500.00
MC2015-09-REVISED GUIDELINES
IMPLEMENTING THE NEW TRAINING
REQUIREMENTS OF COOP OFFICERS
Board of Directors;
Secretary;
Treasurer;
Election Committee,
Audit Committee;
Ethics Committee;
Mediation and Conciliation Committee;
Other Committees created by the General Assembly
and BOD; and
General Manager or Chief Executive Officer.
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PERIOD OF COMPLIANCE
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Penalties
Php 300.00 for late filing of application for
COC, and
Php 300.00 for every year of failure to secure
COC.
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Fair presentation
Complete set of financial statements
Going Concern
Accrual
Comparatives
Consistency
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BORROWING COSTS
FOREIGN EXCHANGE
Transaction is translated into functional
currency at the spot rate at the date of the
transaction
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EMPLOYEE BENEFITS
BIOLOGICAL ASSETS
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BIOLOGICAL ASSETS
INVESTMENT PROPERTY
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INTANGIBLE ASSETS
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IMPAIRMENT OF ASSETS
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INVENTORIES
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LEASES
Operating Lease
Rental income/expense is recognized on a straight-line basis
over the lease term.
Advance rent is recognized as a liability
LEASE TO OWN recorded as installment receivable
Finance Lease
Rental payments are treated as installment payments for the
acquisition of asset
Depreciation and interest expense is recognized by the lessee
Transfer of assets during the lease agreement
Option to buy during the end of the term
IMPAIRMENT OF ASSETS
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REVENUE
Sale of goods- upon delivery
Sale of services- when services are performed
Interest revenue- earned and collected
Dividends revenue- when declared
FINANCIAL INSTRUMENTS
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ACCOUNTING CHANGES
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STATEMENT OF OPERATIONS
Revenue
Cost of sales/services
Marketing costs
Administrative costs
Finance costs
Other income and expenses
Tax expense (if applicable)
Allocation of distribution of net
surplus among:
Statutory fynds
Interest on share capital
Patronage refund
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STATUTORY FUNDS
Reserve Fund
At least 10% of the Net Surplus
New Cooperatives should allocate 50% of its net
surplus for the first 5 years
Cooperative Education and Training Fund
Not more than 10% of the Net Surplus
Community Development Fund
Not less than 3% of Net Surplus
Optional Fund
Not more than 7% of the Net Surplus
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EFFECTIVE DATE
MC 2015-04
GUIDELINES IN THE IMPOSITION OF FINES AND
PENALTIES FOR DELAYED SUBMISSION OF
REQUIRED REGULAR REPORTS
Section 7, Rule 8 of the Revised Rules and
Regulations Implementing Certain and
Special Provisions of the Philippine
Cooperative Code of 2008 provides failure
to file the required regular reports with the
corresponding attachments on time shall
subject the Accountable Officers a fine of P
100.00 per day of delay."
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ADDITIONAL REPORTS
List of affiliates and cooperatives which have
remitted their respective Cooperative Education
and Training Funds (CETF);
f. Business consultancy assistance to include
the nature and cost, including the use of CETF;
and
g. Other training activities undertaken specifying
therein the nature, participants, and cost of each
activity.
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IN ADDITION
List of Members issued with Share Capital
Certificate. This requirement shall however
be submitted after two (2) years from the
effectivity of the Revised Implementing Rules
and Regulation of RA9520.
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NOTICE OF DELAY
The Authority shall notify the cooperatives of
their non-compliance within fifteen (15) days
from the lapse of the period to file the
required reports, stating:
1. that the cooperative has incurred delay
2. the commensurate fines and penalties that
will be imposed as a result of its failure to file
the required reports
3. the demand to pay the fines and penalties
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OTHER RELATED
LAWS
WHAT IS CISA
.A. 9510 otherwise known as Credit
Information System Act (CISA) is a law
passed in 2008 creating the Credit
Information Corporation (CIC)
The Securities and Exchange
Commission (SEC) is the lead government
agency to implement the CISA, in
coordination with other relevant government
agencies in the adoption of the IRR.
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FUNCTIONS OF CIC
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corporation
partnership
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ACCESSING ENTITY"
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