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

Schedule Disposition versions

2012-09-01

SCHEDULE 1

(s. 4)

CONTENT OF THE FINANCIAL STATEMENTS OF COOPERATIVES TO WHICH SECTION 4 OF THE REGULATION APPLIES

(1) The financial statements must include

(1) the balance sheet;

(2) the statement of earnings;

(3) the statement of the reserve; and

(4) where applicable, the statement of the enhancement reserve;

(5) notes to the financial statements.

(2) The balance sheet must be drawn up so as to represent fairly the financial position at the end of the fiscal year and must present the following items separately:

(1) cash on hand;

(2) accounts receivable and provision for bad debts;

(3) the amount overdue or not resulting from the ordinary course of business, due from directors;

(4) the value of inventory with an indication of the basis of evaluation;

(5) prepaid expenses;

(6) total short-term assets;

(7) investments, indicating the name of the enterprise, the nature of the investment and the basis of evaluation;

(8) capital assets, indicating the following classes separately: land, buildings, furnishings and rolling stock, and indicating for each class and the total of all classes: the acquisition cost, the amount of accumulated depreciation and the depreciated value;

(9) deferred charges;

(10) total assets;

(11) short-term borrowings;

(12) accounts payable;

(13) accrued expenses;

(14) deferred income;

(15) the part of long-term debt maturing during the year;

(16) total short-term liabilities;

(17) long-term debts, indicating for each one

(a) the type of debt;

(b) the guarantees;

(c) the interest rate;

(d) the manner of repayment;

(18) rebates allotted in the form of loans; and

(19) total liabilities.

The heading “Equity” follows the presentation of the above items and is divided into 3 sections: Participating Preferred Shares, Members’ Equity and Equity of the Cooperative.

The “Participating Preferred Shares” section states only the amount of the paid-up participating preferred shares.

The “Members’ Equity” section states only

(20) the amount subscribed for the qualifying shares;

(21) the amount of the paid-up common shares;

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

(23) the total for the section.

The “Equity of the Cooperative” section states

(24) the operating surplus or surplus earnings that must be allocated in accordance with section 143 of the Act;

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

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

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

(28) the total for the section;

(29) the total under the heading “Equity”; and

(30) the total obtained by adding the liabilities and the heading “Equity”.

(3) The statement of earnings must be drawn up so as to represent fairly the earnings from the transactions of the fiscal year and must present the following items separately:

(1) gross sales and revenue;

(2) the cost of merchandise sold;

(3) the gross operating surplus or surplus earnings;

(4) expenditures, listing separately:

(a) wages and salaries;

(b) capital asset depreciation;

(c) amortization of deferred charges; and

(d) interest charges;

(5) the operating surplus or surplus earnings or the operating deficit;

(6) under the heading “Other Earnings”:

(a) rebates from a federation or other cooperative; and

(b) extraordinary items;

(7) the operating surplus or surplus earnings or the deficit for the fiscal year;

(8) the interest paid on the preferred shares and participating preferred shares, other than interest paid as participation in the operating surplus or surplus earnings; and

(9) the operating surplus or surplus earnings that must be allocated in accordance with section 143 of the Act or the deficit, as the case may be, including interest paid on the preferred shares and participating preferred shares, if any.

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.

(4) The statement of the reserve must indicate

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

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

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

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

(5) taxes paid or recovered;

(6) any adjustment required; and

(7) 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.

(5) Where applicable, the balance of the enhancement reserve must indicate

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

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

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

(4) 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.

(6) The notes to the financial statements must indicate the recommendations of the board of directors concerning the allocation of the operating surplus or surplus earnings and the resulting taxes, and the effect on the financial statements.

(7) The notes to the financial statements must provide the following information in separate notes:

(1) the rate of interest on rebates allotted in the form of loans and the terms of repayment;

(2) the number of qualifying shares referred to in section 38.3 of the Act, the terms of payment of the shares and the total value of the shares held by members who are deceased, have resigned or have been expelled, if that value exceeds 5% of the value of the paid-up shares;

(3) the conditions for redemption or repayment, the privileges, rights or restrictions attached to the preferred shares and participating preferred shares and the amount of interest in arrears on the shares;

(4) the proportion of the business done by the cooperative with its members within the meaning of section 17 of the Regulation; and

(5) in the case of a producer cooperative, the book value of the shares held in the company employing its members.

O.C. 953-2005, Sch. I.