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TOPIC 10: COOPERATIVES - Coggle Diagram

- - - - Current regulation and standard
        
        Co-operative Regulations 1995
        
        Co-operatives Societies Tribunal Regulations 1998
        
        Co-operative Societies Act 1993
        
        PERS (Private Entity reporting srtandard)
    - - Autonomy & independence
      - Promotion of co-operative education, training and information
      - Member economic participations
      - Active co-operation among registered co-operatives
      - Democratic organizations control/manage by their members
      - Concern for community (community's supermarket)
      - Voluntary and open membership (1member = 1 vote)
  - - - Exemption of stamp duties
      - Assistance and supervision from the gov.
      - Exemption from income tax (first 5 years registration)
    - - Have power to decide the types of goods/service to co-operative
      - get offer of quality good at reasonable price
      - minimum registration and contribution
- - - - Direct, manage and supervise
      - ensure full and proper administration & management
      - Have power to institute / defend suits
      - be jointly and severely liable for any loss sustained through failure exercise such prudence and diligence
      - Represent the society
- - - - the balance of Net profit / profit before zakat - any accumulated loss - payment for statutory contribution, can be used to pay
        
        Dividends to members (proposed dividend)
        
        Honororium to BOD
        
        Return on deposit or subscription
        
        Other payments / funds
        
        Khairat Kematian (<10% of Audited Net Profit)
        
        Share redemption reserve fund (redeem share from the members)
    - - Deducted after profit before zakat (muslim) / audited net profit
        
        Education Trust Fund - refer to minister / 2%
        
        Development trust fund - 1%
        
        Statutory Reserve Fund - refer question (must >15%)
  - - - Liabilities: reports the obligations of the co-operative (bank loan, overdraft)
      - Equities: reports the claims of members (members share capital, members subscription fees)
      - Assets: reports what the co-operative owns in the form property / money / claims for money.
  - - - member of Malaysian Institute of Accountants (MIA) / Institute of Co-operative Auditors (ICA)
      - possess the Auditor License issued by Treasury (MOF)
      - has an audit firm / partner with audit firm
      - possess the Auditor Practicing License issued by the ICA
- - - - audited net profit: < RM2,000
      - School co-operatives societies
      - accumulated losses
- - - - Collecting information & making it available accessible for public scrutiny (penelitian)
      - How to achieve: Full disclosure about own activities, relevant and reliable:
        
        Governance
        
        Value & risk of firms
        
        Investment opportunities
        
        Financial position
        
        Periodic performance,
      - Function: Enhance public trust
    - - Reason of arising Issue: Weak structure & absence of good governance.
      - How to achieve: Monitoring & Evaluation of procedures & outcomes.