Wye

• The Memorandum Circular prescribes the usage of Standard Chart of Accounts for Cooperatives in the accounting and financial reporting
• The Standard Chart of Accounts applies to all types and categories of cooperatives registered with the Cooperative Development Authority, except Cooperative Banks, Insurance Cooperatives, and Electric Cooperatives
• The objective of the Standard Chart of Accounts is to provide guidelines for the use of account and account titles in the preparation of financial statements
• The financial statements required include:

  • Statement of Financial Condition (Balance Sheet)
  • Statement of Operations (Income Statement)
  • Statement of Changes in Equity
  • Cash Flows Statement
  • Notes to Financial Statements
• Asset accounts cover resources controlled by the cooperative from past events and from which future economic benefits are expected to flow
• Current Assets include Cash and Cash Equivalents, such as Cash on Hand, Checks & Other Cash Items, Cash in Bank, Cash in Cooperative Federation, Petty Cash Fund, Revolving Fund, Change Fund, ATM Fund, and E-wallet Fund
• Loans and Receivables include Loans Receivable – Current, Loans Receivable - Past Due, Loans Receivable Restructured, Loans Receivable – Loans in Litigation, Unearned Interests and Discounts, Allowance for Probable Losses – Loans, Accounts Receivables Trade – Current, Accounts Receivables Trade - Past Due, Accounts Receivables Trade - Restructured, Accounts Receivables Trade - in Litigation, Allowance for Probable Losses - Accounts Receivable Trade, Installment Receivables – Current, Installment Receivables – Past Due, Installment Receivables – Restructured, Installment Receivable - in Litigat
• Other Financial Assets include Financial asset at fair value through profit or loss, Financial asset at cost
• Inventories are assets held for sale, in production for sale, or as materials or supplies to be consumed in the production process or services
• Merchandise Inventory refers to the cost of goods on hand out on consignment and in-transit, available for sale at the end of the accounting or reporting period
• Repossessed Inventories refer to the fair value of inventories previously sold but regained as a result of the default of payments due from members/customers
• Spare Parts/Materials & Other Goods Inventory refers to spare parts/materials and other goods on hand and in transit
• Raw Materials Inventory refers to the cost of raw materials on hand and in transit at the end of the accounting or reporting period
• Work in Process Inventory refers to the cost of a job or work in process on hand at the end of the accounting or reporting period
• Finished Goods Inventory refers to the cost of completed job or work orders and goods manufactured/produced/processed on hand and ready for sale at the end of the accounting or reporting period
• Inventory - Agricultural Produce refers to the harvested product of biological assets measured at cost, including all costs necessary to bring the inventory to its saleable/usable condition
• Equipment for Lease Inventory refers to the cost of equipment on hand intended for lease purchase agreement
• Allowance for impairment - Inventory refers to an allowance set aside to provide for impairment losses on inventory, serving as a contra account to Inventories
• Biological Assets refer to living animals and plants intended for sale, measured at cost including all costs necessary to bring the inventory to its saleable/usable condition
• Other Current Assets refer to any other current assets not classified above which are expected to be realized, consumed, or used within the year
• Input Tax refers to value-added tax due from or paid by a VAT registered/registrable entity on the importation or local purchases of merchandise/goods or services including lease or use of property
• Creditable VAT refers to an amount of Value Added Tax withheld by a government entity arising from sale or procurement of goods/services from a taxable institution/cooperative
• Deposit to Suppliers refers to the amount paid in advance to suppliers
• Unused Supplies refer to the cost of supplies on hand
• Creditable Withholding Tax refers to an amount withheld by cooperative/supplier arising from sale or procurement of goods/services from a taxable institution/cooperative
• Assets Acquired in Settlement of Loans/Accounts refer to non-real properties acquired in settlement of loans and receivables such as foreclosure
• Accumulated Depreciation and Impairment-Assets Acquired in Settlement of loans/accounts refers to the total amount of depreciation and impairment of assets acquired in settlement of loans/accounts, periodically charged against current operations
• Prepaid Expenses refer to payments made in advance, to be amortized within one (1) year (e.g. insurance, interest, rentals, etc.)
• Other Current Assets refer to current assets not falling in any of the above categories
• Non-Current Assets include all other assets not classified as current, tangible, intangible, operating, and financial assets of a long-term nature
• Other Financial Assets Long Term refer to financial instruments excluding cash and cash equivalents, loans and receivables, investment in associates, investment in joint ventures, and investments in subsidiaries expected to be realized in more than one year from the reporting period
• Financial asset at fair value through equity refers to financial assets invested in publicly-traded securities with quoted price in the form of debt or equity securities not intended to be disposed of within a twelve (12) month period
• Financial asset at cost refers to financial assets in the form of equity securities not quoted in an active market and expected to be realized in more than one year from the reporting period (net of impairment)
• Financial Asset at amortized cost refers to financial assets in the form of debt securities expected to be realized in more than one year from the reporting period (net of impairment)
• Investment in Subsidiaries refers to the cooperative’s investment as reflected in the equity instruments of non-cooperative subsidiaries (The ownership of the cooperative is more than 50% of the voting shares)
• Investment in Associates refers to the cooperative’s investment as reflected in the equity instruments of associates (The ownership of the cooperative consists of 20%-50% of the voting shares)
• Investment in Joint Ventures refers to the cooperative’s investment in shares of stocks of joint ventures as evidenced by contractual agreement that gives the venturers joint control
• Investment Property refers to property (land or a building, or part of a building, or both) held by the cooperative to earn rentals or for capital appreciation, rather than for use in the production or supply of goods or services or for sale in the ordinary course of business
• Investment Property - Land refers to the cost of land that generates income or capital appreciation, not used in the production of goods, supply or services, nor for administrative purposes or sale in the ordinary course of business, measured at cost
• Investment Property – Building refers to the cost of building that generates income or capital appreciation, not used in the production of goods, supply or services, nor for administrative purposes or sale in the ordinary course of business, subject to depreciation