‘Republic of the Phitippines OFFICE OF THE PRESIDENT Department of Finance COOPERATIVE DEVELOPMENT AU’ MEMORANDUM CIRCULAR NO. 2009-04 Series of 2009 To : ALL CONCERNED SUBJECT : STANDARD CHART OF ACCOUNTS FOR COOPERATIVES Pursuant 19 Section 3 of 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 is 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 lo. 9520, otherwise known as the Philippine Cooperative Code of 2008. IE. Objective and Purposes The basic purpose of presctibing 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. Specifically, these shall: a) ensure uniformity and common understanding of accounts; b) guide in the installation of accounting and internal control systems; ©} facilitate the conduct of audit; 4) enhance transparency; ) sets standards and discipline in measuring the financial safety and soundness; ‘cio the analysis and evaluation of financial management performance; » ‘de basis in monitoring, supervision and business linkages. A complete set of financial statements inciudes tie following component ‘A. Statement of Financial ‘Condition (Balance Sheet) shows assets, libilities, and equity accounts of a business entity as of a given date, Assets ang liabilities are further classified as current or non-current. Non-current assets include property, plant and equipment, infongible assets, investments and financial assets (excluding investments under the quity method, trade and other receivables and cash and cash equivalents); while non-current Habilities include long-term debt, long-term provisions and other liabi ities that will be settled after-the current operating eycle or will not require the use of current assets. Equity accounts for a cooperative include members’ share capital, donations and/or grants, and statutory funds. ‘Statement of Operations (income Statement) presents revenues, costs and. expenses, gaias and losses and net surplus or net loss. The items presented are recognized in the ‘books using modified accrual basis of accounting. Expenses are classified according t0 their function as part of cost of sales/services rendered, distribution or administrative activities. 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 by- laws. C. Statement of Changes in Equity shows separately the changes in members’ equity, donations and grants and statutory funds. Transactions affecting these accounts include ‘embers’ capital build-up, refund of share capital due to membership withdrawal, ecceptance of donations and grants in cash or in kind and subsequent utilization, allocation of net surplus to and utilization of statutory funds. Cash Flows Statement is a formal statement summarizing all the cash activities of the cooperatives. These include their operating, investing and financing activities. Notes to Financial Statements include narrative descriptions or more detailed analyses of mounts shown on the face of the financial statements as well as additional information not presented on the face f the Statement of Financial Condition, Statement of Operation and Statement of Cash Flow to achieve fair presentation. It also describes the accounting policies and the measurement basis /bases used in the preparation of the financial statements Standard Chart of Accounts for Cooperatives | ACCOUNT \CCOUNT TITLE | DEFINITION |_ COE STATEMENT OF FINANCIAL CONDITION [7 10699 |ASSET ACCOUNTS - Economic Resources ‘of Cooperatives that are recognized land measured in conformity with Philippine Financial Reporting Standard taking {nto consideration cooperative laws, principles and practices in the Philippines. 71000-12000 CURRENT [Cash and other asseis that are reasonably expected 10 be lASSETS |realized in cash or intended for sale or consummation within liwelve months after the balance sheet date, or the normal loperating cycle of the business, unless it is restricted from being exchanged or used to settle a liability'for at least \ \hwefve months after the balance sheet date (PAS 1) i - T1100 | Cash and Cash (This account refers to cash on hand and demand deposits and i} Equivalents lother cash equivalents that are: (1) readily convertible to \ Iknown amounts of cash; and (2) so near their maturity | riginal maturities of 3 months or less) that they represent lnegligible tisk of changes in value because of changes in | interest rate. (PAS 7) {Trio ‘Cash on Hand [This account refers to money \ ipossession of the cooperative’s claccount (Cope | ACCOUNT THLE DEFINITION T1120 | Checks & Other | This account refers to dated checks, postal money order | Cash Items (PMO) and demand drafts awaiting deposits Coch, : i TH130 ‘Cash in Bank _ [This account refers to money deposited in the bank under the iname of the cooperative, Le. savings, current, time deposits, land combo-account. A subsidiary ledger shall be maintained for each bank account. 11140 Cash in ~ [This account refers to money deposited in the federations to i Cooperative which they are affiliated, ic. savings and time deposits which’ io Federation lare unrestricted and readily available when needed. A subsidiary ledger shall be maintsined for each account. THso Petty Cash Fund |Tais account refers to limited amount of money set aside for small expenditures such as stationeries, supplies and fares ‘maintained under an imprest system. It should be fF ireplenished periodically when the fund gets iow. Pires Revolving Fund [This account refers to the amount set aside to cover disbursements for recurring transactions maintained under an |ionprest system. It should be replenished periodically when the fund gets low. . This may include emergency purchases, i Ivithdrawal of deposits, release of loan proceeds, ete, the |maximurm amount of which shall be predetermined by the [Board of Directors. Tiso ‘Change Fund | This account refers to the reasonable amount of money set 1 jaside by BOD to change bigger amount of bills to smaller \denomination or coins or vise versa. 11200 | Tnvestment at Fair |This account refers to financial assets that is classified as \ Value through iheld to-trading and upon initial recognition are designated by | Profitor Loss _the coop as at fair vaiue through profit or loss. This shall |comprise of both debt and equity securities and shall be lnceounted for in the same manner as Hold to Maturity 11300 ‘Held-to-Maturity |This account refers to debt securities maturing within the (HTM) Financial _|year, quoted in an active market with fixed or determinable Assets [payments and fixed maturity that the cooperative has the \positive intention and ability to hold to maturity (PAS 39). Unamortized [This account refers to the unamortized discount/premium on Diseount/ ITM debt securities, which shall be debited/credited Premium - HTM lmonthly based on the effective interest method with the ‘corresponding credit/debit to “Interest Income ~ HTM Debt \Securities”. 11400 ‘Available-for-Sale_ \This account refers to securities that are designated as (AFS) Financial —_|available-for-sale, and are not classified as: (a) loans and Tso Assets |receivables; (b) held to maturity investments; and (c) financial assets at fair value through profit and loss. [aio “Recumulaied [This account refers to cumulative gains/ (losses) arising from Geins/ Losses |change in the faic value of AFS securities. The contra AFS jcumulative account is “Net Unrealized Gains/ (Losses) on }- |AFS Financial Assets”, which is a separate component of | lequity. ALE FLOEMEN| CODE | ACCOUNT TITLE DEFINITION | 11420 Allowance for [This account refers to the amount of impairment loss that has y Probable been incurred on AFS Securities. This is a temporary | Losses - AFS FA account to offset unrealized gains on investments ~ AFS. [T1500 | Unquoted Debt [This account refers to debt instruments thet do not have @ | Securities Classified| quoted market price in an active market and whose fair value | As Loans lcannot be reliably measured, including derivatives that are | | linked to and must be settled by delivery of such unquoted | \debt instruments, which shall be measured at cost. {11600 Tnvestment in Non- (This account refers to equity instruments that do aot have a { Marketable Equity \qucted market price in an active market, and whose fair value| | Securities (INMES) \cannot be reliably measured, but which shall be measured at ' cost, | si ‘Allowance for [This account refers to cumulative amount of impairment loss } Probable ~ — {that has been incurred on INMES. 1 | ‘Losses — INMES \1i700 Loans And [These refer to financial assets with fixed or determinable i | Receivables \payments that are not quoted in an active market other than. | | |Available for Sale, Held to Maturity and Investment at Fair | : \Value through Profit and Loss. { | anit ‘Loans Receivable|This account refers to the outstanding balance of foans — Current lgranted to the members which are not yet due 11712 | Loans Receivable |This account refers to outstanding balance of loans to j ~Past Due |member-borrowers not paid on installment due date, | considered as Portfolio at Risk (PAR). THT Loans Receivable |This account refers to receivables from the member- 1 Restructured borrowers whose loan accounts, were restructured upon full ' | lpayment of interests due. | . 11714 | Loans Receivable {This account refers to receivables from member-borrowers | —Loans in lunder legal action. ‘The loan shail remain in this account “Litigation during the pendency of the legal proceedings and until fully | |paid/restructured/foreclosed and undergone proceedings. UTS ‘Unearned [This account refers to interest already received but not yet Interests and. learned and presented as a contra asset account. Discounts | Ss Allowance for [This account refers to the cumulative amount set up against Probable Losses |the current operation for possible losses arising from non- on Loans collection of loans. A721 Accounts: \This account refers to the amount due from member and/or | Receivables inon-member patrons resulting from services rendered and | Trade —Current |sales of related goods /merchandise which are expected to be \ |collected within the credit terms set by the Board of lL eS | 40722 ‘Accounts [This account refers to total trade receivables due from \ Receivables | |members and/or non-member patrons which remain unpaid ‘Trade -Past Due [beyond the credit terms set by the BOD.[accounT ‘Cope | ACCOUNT TITLE DEEINITION TTS ‘Recounts [This aacount refers to total Trade receivables from the | Receivables _ {member & non-member patrons whose accounts were | Trade - {restructured upon full payment or settlement of interests due [__Restrctared andlor penalties [1 | Accounts [This account refers to total trade receivables from member | | land non-member patrons under legal action. The receivables | | shall remain inthis account during the pendency of the legal | 1 Iproceedings and until fully settled. TS ‘Alicwance for [This account refers to the cumulative amount set up against Probable. Losses the current operation for possible losses arising from non- | on Accounts collection of secounts. Receivable Trade TT Installment | This account refers to the amount due from members and | Receivables non-member patrons for sale of merchandise/goods on a Current ldeferred payment or fustallment plas. TSE Tnstaliment | This accoutd refers to amount due from members and non- | Receivables~ _ |member patrons for sale of merchandise / goods on a | |” Past Due Ideferred payment or installment plan which remain unpaid. | 'beyond the terms set by the cooperative. | Tras Tnstaliment [This account refers to amount due from members and non- | Receivables— member patrons for sale of merchandise / goods on a | Restructured {deferred payment or installment plan that were restructured | "upon full payment or settlement of interests due and/or | penalties. Tina Tnstaliment ~ [This aceount refers to amount due from members and non- Receivables - in fmember patrons for sale of merchandise / goods on a Litigation deferred payment or installment plan under legal action. The receivables shall remain in this account during the pendency lof the legal proceedings and until fully settled. TTS ‘Allowance for | This accouat refers to the cumulative amount set up against | Probable Ithe current operation for possible losses arising from non- i Losses on collection of installment receivables ‘Installment Receivables {i786 Unrealized Gross [This account refers to the unrealized portion of the gross | Margin lmargin on goods sold on instaliment basis. This is a contra, | jaccount to installment receivable. (used by coops involved in | Ireal estate operations) T1740 | Sales Contract This avcount refers to amortized cost of the receivables Receivable larising from installment sale of assets acquired in settlement lof loans/obligations, 174i ‘Allowance for [This account refers fo the cumulative amount of impairment | Probable lloss that may arise from non-collection of payment on Sales Losses- Sales ‘ontract Receivables. Contract Gore PERO PI t | Receivables fie sacoxb) section “2 [Scene heel core By Neate As Lia[ACCOUNT | y _ cope. | ACCOUNT TITLE DEFINITION | i 750 | Advances to (This account refers to duly approved cash advances for I | Officers, jofficial business to officers, employees and members, subject | | Employees and {to liquidation in accordance with the policy of the | Members \cooperative. T1760 | Due from ‘This account relers to total collectibles due from accountable Accotintable lofficers and employees arising from shortages, losses and ' ¢ Officers and unliquidated cash advances beyond the prescribed period, |_ Employees [that are subject to immediate settlement. 3770 | Finance Lease |This account refers to current portion of the long term lease | Receivable T1780 | Other Current — | This account refers to transactions/adjustments not classified | Receivables lunder any of the receivable accounts mentioned. Ti800 | inventories (These reler to cost or other appropriate value of merchandise \ lend other goods on hand, in-transit, on consignment with lother entities and in process which are intended for sale or | [production (isto Merchandise |This account refers to cost of goods on hand, in consignment | Inventory land in-transit, available for sale at the end of the accounting | lor reporting period. Vise Repossessed This account refers to fair value of inventories previously Tnventories sold but regained as a result of the default of the payments | {dae from members/eustomers. ese Spare | This accoust refers to spare parts/materials and other goods Parts/Materials jon hand and in transit which ate held for sale | & Other Goods Inventory Tea Raw Materials _ |This account refers fo cost of raw materials on hand and in | Inventory. transit at the end of the accounting or reporting period. 1 11850 Work in jis account refers to cost of job or work in process on hand | Process lat the end of accounting or reporting period. | Inventory Tis Finished Goods _ | This account refers to cost of completed job or work orders | | Inventory’ - [and goods manufactured/ produced/ processed on hand and |ready for sale at the end of accounting or reporting period. Tig?) [~ Agricultural [This account refers to the harvested product of the biological Produce lassets and shail be measured at its fair value less estimated [point-of-sale costs at the point of harvest. i Tis80 ‘Equipment for [This account refers fo cost of equipment on hand intended for| \ Lease lease purchase agreement. \ Inventory | tise ‘Allowance for [This account refers to allowance set aside to provide for i ‘the Decline in _|impairment losses on inventory. This is a contra account to Value of inventories. i InventoryACCOUNT TITLE DEFINITION Biological Asseis | This account refers to the cost of ving animals and plants ithe are intended for sale. This shalt be measured at its fair t | lmarket value less estimated point-of-sale costs, except when lestimates of fair value are determined to be clearly lunreliable. Biological assets refer to fiving animals or plants. { \PAS 41). | 13000 | “Other Current |This account refers to any other assets which are expected to | Assets ibe realized, consumed or used within the year. It also | includes any other current assets that are not assigned to cash | ~ land cash equivalents, and loans and receivables. i (iaia0 [pat Tax FFs account refers to value-added tax due from or pald by @ i | = |VAT registered /registrable entity on the importation or local | | lpurchases of merchandise/goods or services including lease | I ruse of property 1305 |” Beposinto This account refers tm the amounl paid in advance fo |__Suppties suppliers. 72300 | Unused "This account refers to cost of supplies on hand. | Supplies [32000 Prepaid [This account refers to payments made in advance, to be | | Expenses lamortized within one (1) year (e.g. insurance, interest, | I [entals, et) "BOW |NON CURRENT [al after asels nor classed as current to include tangible, ¥7000 [ASSETS Intangible, operating and financial assets of a long term { pratwre. 13100 | Held-to-Maturity |This account refers to debt seoutities quoted in an active (HTM) Financial {market with fixed or determinable payments and fixed Assets [maturity that the cooperative has the positive intention and lability to hold to maturity (or as defined under PAS 39). L (site Un-amortized | This account refers to the unamortized discount/premium on | Discount! IHTM debt securities, which shall be debited/eredited | Premium - |montbly based on the effective interest method with the | HIM |corresponding credit/debit to “Interest Income ~ HTM Debt Securities”. 13120 Allowance for [This account refers to the cumulative amount of impairment Probable loss that has been incurred on HTM LT —FA securities. ‘Losses — HTM- LYRA 15200 | Available-for- This account refers to securities that are designated as Sale (AFS) lavailable-for-sale, and are not classified as: (a) loans and Financial Assets receivables; (b) held to maturity investments; and (c) [financial assets at fair value through profit and loss. #3216 | Accumulated [This account refers to cumulative gains/ (losses) arising from | Gains/ Losses _|change in the fair value of AFS securities. The contra | ~AFS _ - [cumulative account is “Net Unrealized Gains/ (Losses) on |AFS Financial Assets”, which is « separate component of {| equity.ACCOUNT | accouNT TITLE DEFINITION CODE | | 15220 | Allowance for his account refers to the amount oF impalrinent loss Wha has Probable been incurred on AFS Securities. This is a temporary Losses-AFS _ faccount to offset unrealized gains on investments — AFS, FA 13300 | Unquoted Debt | This account refers to debt instruments that Jo not havea Securities [Quoted market price in an active market and whose fair value | Classified As [cannot be reliably measured, including derivatives that are Loans Hinked to and must be setted by delivery of such unquoted debt instruments, which shall be measured at cost. 13400 | Tnvestment in ‘This account refers to equity instruments that do nat have @ Non-Marketable juoted market price in an active market, and whose fair value | ‘a Equity Securities |cannot be reliably measured, but which shall be scasured at er) cost. Allowance for This account refers to cumulative amount of impalmmieat Tose Probable Losses that has been incurred on INMES. —INMES 13500 | Tnvestment in This account refers to the amount of the cooperatives Subsidiaries/ investment in the equity instruments of unconsolidated Associates and ~ subsidiaries! associates, or pint ventures, Accounted for in “olnt Ventures leccordance with PAS 27 for Investment in Subsidiaries, PAS 28 for Investment in Associates and PAS 31 for Investment fin Vs. 13600 | Investment |Cost of property (land or building or a portion thereof) used Property to generate income or capital appreciation or both, not used in production of goods, supply ot services nor for | |administrative purposes nor sale in ‘the ordinary course of [business measured at cost and subject to depreciation. Fair value of property must be disclosed at the end of {sccounting/reporting period (PAS 40), 43610 | Investment \This account refers to cost of land 4 portion thereof to | Property = \generate income or capital appreciation or both, not used in Land [Production of goods, supply or services nor for administrative [purposes or sale in the ordinary course of business measured |at cost. Fair value of the property must be disclosed at the lead of the accounting/reporting period, [Bea investment [This account refers to the cost of building or a portion thereo# Property — to generate income or capital appreciation or both, not used Building in production of goods, supply or services nor for administrative purposes cr sale in the ordinary course of [business measured at cost and subject to depreciation. 13650 ‘Accumulated (This account refers tothe total amount of depreciation and Depreciation _jimpairment on Investment Property - Building that are set up & Impairment _Jpetiodicaity and charged against the current operations, | = Investment Property- Bldg. 15700 || Real and Other”) This account refers to real and other properties, acquired by Properties ithe co-op in settiément of loans and receivables ‘through: Acquired (ROPA) {foreclosure or dacion en pago andlor for other reasons, [Should the cooperative use such assets in its main operation, [the same assets shall bel (cops | ACCOUNT TITLE | DEFINITION ("13710 |” Allowance for [This account refers to the cumulative amount of impairment \ Probable loss incurred on ROPA, which shall be accounted for in| | Losses — leccordance with PAS 36 |_RoPA 14005 | Property, Plant |All tangible assets with an estimated useful lie beyond one | | and Equipment ar, are used in the conduct of the business, and not lintended for sale in the ordinary course of business. \Recorded at cast or fair value if donated. Taio Land (This account refers to the acquisition cost of the land used for | its main operation plus all incidental costs such as title, taxes, surveying fees, legal fees, restoration cost, and other cost, jeto. All these are reflected in a single cost (fair market value jor appraised value if donated). Taxes paid by the |cooperatives as a contribution to the cost of public limprovements (special assessment) are treated as part of the cost of the land. At the end of the accounting! reporting, period, fair value of the property must be disclosed. iat ‘Accumulated {This account refers to the total amount of impairment that are Impairment _|set up and charged against the current operation. Loss [~¥4i30 Land {This account refers to the cost of depreciable improvements Improvements _|afler land acquisitions such as fencing, roadways, landscaping, etc, that are subject to depreciation over their luseful tives. iia ‘Accumulated {This sceount refers to the total amount of depreciation’ Depreciation~ _jimpairment cost on land improvement that are set up Land [periodically and charged against the current operations. Improvements 14130 Building and | This account refers to the acquisition/constraction cost of the | improvements [building and its improvement on the land owned and used for - fits main operation, Major repairs or improvements that will [prolong the life of the building are considered capitalizable Icost. At the end of the accounting/ reporting period, fair : ivalue of the property must be disclosed. [iai3T ‘Accumulated ~~|This account refers to the total amount of depreciation! Depreciation - _ linipairment cost on building that are set up periodically and Building and charged against the current operations Improvements Taig Building on | This account refers to the cost of construction of new Leased/Usuftuct [building on a feased/usutfruct land and shall be depreciated Land lover the estimated life of the building or the lease/usufuct | {term whichever is shorter. (ait ‘Accumulated | This account refers to total amount of depreciation on | Depreciation ~ [Building on Leased/Usufruct Land based on cost that are set- | Building on _|up perfodically and charged against the current operations. | | Leased/Usufruct [| Land‘ACCOUNT| cope | ACCOUNT TITLE DEFINITION \ 1450 Utility Plant |This account refers to cost of property and equipment used in | lthe generation of power/water and other utilities for operation| i land/or for distribution to consumers. [: ‘Accumulated [This account refers to total amount of depreciation cost on | Depreciation [Utility Plant that are set up periodically and charged against | | Utility Plant the current operations Taio ‘Property, Plant _ [This account refers fo the cost determined by the fair or & Equipment - [present value of feased Property, Plant and Equipment.. Under Finance Lease | Bie ‘Accummilated {This account refers to total amount of depreciation on PPE - | | Depreciation funder Finance Lease that are set-up periodically against Property, Plant current operations. | & Equipment - | Under Finance L Lease [aie ‘Construction ia {This account refers to the cost of materials, labor and other | Progress [construction related costs incurred on unfinished construction! | . |project, prior to cocupancy/actual use. {180 Furniture, [This account refers to the cost of movable (Kumiture), | Fixtures & limmovable (fixtures) properties and office / production! Equipment store equipment used in the ordinary course of business such | (FEE) las but not limited to desks, chairs, cabinets, computers, | vaults, including incidental expenses incurred in acquiring, | t Ithem, up to the time they are received and ready for use. [14181 | Accumulated | This account refers to the total amount of depreciation/ Depreciation - _ {impairment cost on Furniture, Fixture and Office Equipment | FEE ithat are set up periodically and charged against the current. I i ‘operations 14190 | Machineries, [This account refers to the eost of machineries, tools and Tools and ‘equipment owned and used in producing goods, providing | Equipment services and repairs. | T4i87 | “Accumulated This account refers to the total amount of depreciation on | Depreciation machineries, tools and equipment that are set-up periodically | | Machineries, [and charged against the current operations i Tools and Equipment 14200 ‘Kitchen, [This account refers to the cost of equipment, cutleries and... | Canteen & lother tools used in food preparation and serving including Catering incidental expenses incurred in acquiring them up to the time Equipment! ~ |they areteceived and ready for use. _ Utensils T4207 ‘Accumulated [This account refers to the total amount of depreciation on \ Depreciation- Kitchen, Canteen and Catering Equipment/Utensiis that are | Kitchen, ‘set-up periodically against current operations. { | Canteen & ' Catering Egitipment/ UtensilsACCOUNT T [cope | ACCOUNT TITLE | DEFINITION Tae “Fransporiation | This account refers to the cost of equipment owned and used |. Equipment in transporting goods, services or persorine! suck as I Imotoreycles, pick-ups, vans and other vehicles. T4211 | Accumulated [This account refers to the total amount of depreciation? | | Depreciation - impairment cost on Transportation Equipment that are set up ‘Transportation {periodically and charged against current operations Equipment . 14220 Tinens and (This account refers to the cost of linens and the uniforms | Uniforms lused by employees and staff including costs of tablectoth, { lcurtains, blankets and similar items. 14227 | Accumulated ~~ |This account refers to the total amount of depreciation on | | Depreciation — . “linens and uniforms that are set-up periodically against / Linens and lcarrent operations. Uniforms 14230 Nursery! [This account refers to the cost of nursery and greenliouse \ Greenhousss [facilities and equipment used for seedling production and : growing of vegetables 13) Accumulated [This account refers to total amount of depreciation and | Depreciation- impairment on nursery and greenhouse that are set-up | Nursery! periodically end charged against the current operations. | Greenhouse 240 Leasehold [This account refers to the cost of improvements on premises Rights & lunder operating lease including cost of rights and concession | Improvements [rights which are subject to amortization over the usefil life of { [the property or the term of the lease, whichever is shorter. | 15100” | Biological |This account refers fo cost of breeding stock/working animals Assets-Animals _lowned by the cooperative. IS1OL_ | Accumulated {This account refers to total amount of depreciation and | Depreciation _ impairment on Biological Assets Animals that ae set-up | Biological [periodically and charged against the current operations. [Assets — | Animals 15200 | Biological [This account refers to living plants that produces seeds, | Assets-Plamis _|seedlings, flowers or fruits. T5201 | Accumulated [This account refers to total amount of depreciation and Depreciation _ impairment on BA - plants that are set-up periodically and | Biological icharged against the current operations. L Assets ~ Plants | 16000 | Tntangible Assets |Tdentifiable non-monetary asset without physical substance | ir which future economic benefits are expected to flow back \and amortized over the estimated useful life or legal life { whichever is shorter. 16160 Franchise |For Franchisor -This account refers to the cost of developing land registering the trade mark /orand /loge for a particular [product or services for the exclusive use and benefit of the lcoop. For the Franchisee - the cost of acquiring the right and [privilege to sell goods and services using the particular| Cops | ACCOUNT TITLE DEFINITION [16200 | Franchise Cost [his ‘account refers to the cost of acquiring privilege or right | { granted by Franchising Agencies to a cooperative to exereise ' \ lan exclusive service to a particular route or area. 16300 Copyright |This account refers to the right for the exclusive use or | distribution of products or services acquired from an author | lor artists. | | | Tea00 Patent IThis account refers fo the exclusive rights granted by the | | state to a patentee (the inventor or assignee) for a fixed \ [period in exchange for the regulated, public disclosure of | |certain details of a device, method, process or composition of| | |matier which is new, inventive, and useful or industrially applicable T7605 | Other Non- [Assets which do not fit into any of the preceding Current Assets _|elassifications T7100 Cooperative | This account refers to expenses incurred prior to the actual | Development operations of the cooperative, subject to amortization for a Cost [period not exceeding three (3) years. 17200 Product” [This account refers to cost of enhancement improvements oF Business lexisting products and/or development of new products and | Development _|prototypes/samples for production after establishing the Cost ~ technical and commercial feasibility. 17306 Computerization |This account refers to the cost of acquisition or development Cost lof computer programs and other software excluding lupgrading of system. This is amortized over a period not |exceeding three (3) years or useful life whichever is shorter. 17400 ‘Other Funds |This acount refers to restricted Funds set aside for funding of| and Deposits [Statutory and other reserves such as Retirement, Members! i [Benefit and Other Funds. This may be in the form of time \deposit or other securities which may be convertible to cash |when needed. T7500 Finance Lease [This account refers o the long term portion of the Finance Receivable [Lease Receivables. 17660 ‘Due ffom Head [This account refers to receivables from Head Office! ‘Office/Branch/Su |Branches/ Subsidiary | bsidiary 17700 ‘Assets Held for {This account refers to non current assets andlor assets of a ' 7 Sale (discontinued operation held for sale which is measured at the | | llower of its carrying amount or fair value less cost to sell. | 17800 Deposit on |This account refers to deposits on containers subject to | | Retumabie refund upon its return. { Containers [1806 Miscellaneous (This account refers to assets not falling in any of the above i Assets |eategories.[accourr] cope | ACcouNT TITLE DEFINITION [20000-23000 CaaS ~Econontic Obligations that are recognized and measured in conformity with generally accepted accounting principles taking into | \ i \eonsideration cooperatives’ laws, principies and practices in the Philippines. { | | 21000 (CURRENT |Obligations reasonably expected to be seitled within the | [LIABILITIES ——_pormal business operating cycle, that: (a) is due within 12 | | months after balance sheet date; (b) is held primarily for the i |purpose of being traded; (¢) does not have an unconditional i irigit to defer settlement of the liability for at least 12 months | ‘after balance sheet date. | "21100 | “Saving Deposits [This account refers to deposits made by members that can be | jwithdrawn anytime at the option of the member-depositors. [7 21300 | Time Deposits | This account refers to deposits made by members for a specified period of time and withdrawable at a predetermined date. 21300 | Accounts Payable- | This aecount refers to obligations/indebtedness to suppliers Trade for purchase of goods and services intended for sale 21400 | Accounts Payable- This account refers obligations/ indebtedness to suppliers for Non Tradé [purchase of goods and services not intended for sale (e.g. |supplies, periodicals and etc.) 21500 | Loans Payable- | This account refers to the indebtedness to financial Current institutions, federations, unions, or individuals payable within ithe accountingy/fiscal period and the current portion of the i | [Long Term Loans Payabie. 21600 | Finance Lease | This account refers to the current portion of PPE acquired | Payable—curreat funder Finance Lease Agreement. 21700 | Due to Regulatory | This account refers to amount collected from members in | Agencies ipayment for registration, licensing, supervision, ete. with [Regulatory Agencies | 21800 | Cash Bond Payable [This account refers to amount received from | ~ jmembers/employees as guarantee for the use of equipment! j jaccessories / future losses, shortages and damages 21900. | SSS/ECC/ — | This account refers to amounts withheld from the | Phitheaith /Pag- _|compensation income of employees representing their | big Premium [premium contributions to SSS, Phithealth and Pag-ibig | | Contributions agencies and the corresponding share of the cooperative as | Payable lenipioyer. [22000 S8S/Pag-Ibig [This account refers to amounts withheld from the | Loans Payable compensation income of employees representing their | } |payment of loans to SSS and Pag-ibig agencies. [22100 | Withholding Tax [This account refers to all taxes withheld as preseribed by Taw. | Payable I | T2200 ‘Output Tax |This account refers to value added tax on the sale of taxable |ACCOUNT cope | ACCOUNT TITLE DEFINITION | (2230 VAT Payable [This account refers to excess of output tax over input tx i400 | Accrued [This account refers to expenses that have been incurred but Expenses Inot yet paid as of the end of accounting period. | 33500 | Tnterest on Share [This account refers to lability to members for interest on I Capital Payable {share capital, which can be determined only at the end of | fiscal year [2600 | Patronage [This account refers to liabiliy e to members for patronage | Refiind Payable _[refuid, which can be determined only at the end of fiscal - year. |" 275 F Diete (This accouat refers to the accumulated amount set aside to be | Union/Federation credited to the Union/Federation where the cooperative is a \ (ETF) Imember. This corresponds to the 50% of the total annual lallocation for the Education and Training Fund. [22806 | Deposit from [This account refers to deposits from customers for containers, |_ Customers [food or other services subject to refund. 22900 | Advances from [This account refers to advance payment for delivery of goods | Customers lor services. 3000 | School Program [This account refers to an amount allocated as support Support Fund —_ mechanism to school program, which remains unpaid. | | Payabie applicable to public school - based cooperatives only) 3100 | Other Current | This account refers to other liabilities that eannot be | Linbitities classified under any of the preceding current liability I jaccounts. 24000 _|NON-CURRENT [Liabilities payable beyond one year Wids | Loans Payable | This account refers to the indebtedness of the cooperative to financial institutions, federations, unions, or individuals i ipayable beyond one year. 2200. | Discounts on (This account represents the interest deducted from the foan Loans Payable _|value/principal to be amortized over the term of the loan lusing effective interest metiod. This is a contra account to | [Loans Payable. 74300 | Bonds Payable (This account refers to the amortized cost of obligations larising from the issuance of bonds. Das |“ Unamortized _ _ |This account refers to the unamortized discount/premium on Bond Discount’ lponds payable which shall be amortized during the term of | Premium {the bond issued using the eifective interest method. 7300 | Revolving (The account refers to deferred payment of interest on share Capital Payable — |capital and patronage refund, which should be agreed upon in Ithe General Assembly. (7a606 Retirement Find — |This account refers to the accumulated retirement benefit | Payable lcosts charged against the inzome of the cooperative over the lexpecied remaining working lives of participating qualified lemployees. eaeACCOUNT | j T “Cope | ACCOUNT TITLE | DEFINITION | 24700 | Finance Lease [This account refers to the future lease payments for Property, | | Payable -Zong _|Plant and Equipment acquired under finance lease, Net of the | Term |Current Portion. i 24800 ‘Other Non-Current \The totality of all other liabilities that cannot be classified | Liabilities lafter any of the preceding liability accounts. | 24810 Project Subsidy _ This account refers to the unused portion of the Fund |donation/grant for training, salaries and wages, etc | 24835 Members™ "This account refers to funds for special purposes such as Benefit and _ {member's benefits, including Kilusang Bayan Guarantee | Other Funds ~ . [Fund (KBGF) / Cooperative Guarantee Fund (CGF) not part Payable lof the distribution of net surplus. | 24830 Due to Head ~ |The account is used to record inter-office transactions in the Office / [books of Head Office (HOYBranch/ Subsidiary and should Branch/ [be closed at the end of the accounting period. Subsidiary Tsao ‘Other Non | This account refers to other long ferma liabilities not Current sewhere classified. ~ Liabilities ie 30000 [EQUITY = Excess of a cooperative’ assets over lis Habilities 30100 ae (This account refers to ownership Interest of members in the L LOUITY. cooperative. 30110 | Authorized Share | This account refers to authorized capitalization in common Capital — |share as prescribed in the articles of cooperation. Conimon [30120 | "Unissued Share [This account refers to portion of the Authorized Share | Capital — ICapital - Common prescribed in the articles of cooperation ‘Common [which is not yet subscribed and issued. 30150 | Subscribed Share (This account refers to the share capital subscribed by regular Capital Imembers payable over a certain period of time ‘Common 30140 | Subscription [This account refers to the total unpaid subscribed share Receivable - lcapital of regular members. | Common 3015 | Paid-up Share | This account refers to collected subseribed capital stock- | Capital — lcommon share (ifmemo entry recording is used). t Common | 30160 | “Treasury Shares __ [This account refers to common shares bought back and held | Capital - lin treasury. This account should only be used in the event | ‘Common |that there are no members who are willing to buy the shares lof outgoing members. | 30170 | “Authorized Share [This account refers to the authorized capitalization in | Capital - ipreferred shares as prescribed by the articles of cooperation. Preferred 30180 | Unissued Share | This account reifrs to portion of the Authorized Share| | Capital - {Capital - Preferred as prescribed by the articles of i cooperation which are not yet subscribed and issued. |_ Prefered