C-67.2, r. 1 - Regulation under the Cooperatives Act

Section 6 Disposition versions

2012-09-01

6. The financial statements must be adapted to the special features of a cooperative undertaking as follows:

(1)  any rebates allotted in the form of loans must be the last item under the heading “Liabilities”; that heading must be followed by the heading “Equity”, subdivided into a “Participating Preferred Shares” section, a “Members’ Equity” section and an “Equity of the Cooperative, Federation or Confederation” section, as the case may be;

(2)  the “Participating Preferred Shares” section must state only the amount of the paid-up participating preferred shares;

(3)  the “Members’ Equity” section must state only

(a)  the amount of the paid-up common shares; and

(b)  the amount of the paid-up preferred shares;

(4)  the “Equity of the Cooperative, Federation or Confederation” section must state, as applicable,

(a)  the operating surplus or surplus earnings that must be allocated according to section 143 of the Act;

(b)  the amount of the reserve referred to in section 145 of the Act;

(c)  the amount of the enhancement reserve referred to in sections 149.1 to 149.6 of the Act; and

(d)  the amount of the contributed surplus and appraisal increase credits, if any;

(5)  the expression “operating surplus” or “surplus earnings” replaces the expression “profits”; the expression “surplus earnings” may be used for all classes of cooperatives, whereas the expression “operating surplus” may be used only in the case of cooperatives that supply goods or services;

(6)  the expression “deficit” replaces the expression “loss” in the statement of earnings;

(7)  the statement of the reserve replacing the statement of retained earnings must indicate

(a)  the balance at the end of the preceding fiscal year;

(b)  the operating surplus or surplus earnings for the preceding fiscal year that must be allocated in accordance with section 143 of the Act;

(c)  the details of the rebates allotted by the last annual general meeting;

(d)  the interest paid as participation in the operating surplus or surplus earnings on the participating preferred shares, if any;

(e)  taxes paid or recovered;

(f)  any adjustment required; and

(g)  the deficit for the fiscal year including interest paid on the preferred shares and participating preferred shares, less any part of those items already charged to the enhancement reserve;

(8)  where applicable, the statement of the enhancement reserve must indicate

(a)  the balance at the end of the preceding fiscal year;

(b)  the surplus earnings of the preceding fiscal year allocated by the board of directors;

(c)  the details of the rebates allotted for the fiscal year concerned out of the enhancement reserve; and

(d)  any deficit or part of the deficit for the fiscal year including interest paid on preferred shares and participating preferred shares, up to the balance of the enhancement reserve, which may not be negative.

O.C. 953-2005, s. 6.