Fact Sheet

Courses regarding Co-ops in Canadian Universities.

Canadian Co-operative Association and the Conseil Canadien de la Coopération, 2004

Alberta Community and Co-operative Association, 2 pp. Brief comparison of co-operatives, investor-owned businesses, and nonprofit organizations based on ownership, voting, and sharing of surplus.

To download the call on .mp3, follow the link on divshare.

 Please note that the file titled "QF Presentation Slide.ppt" is page 15 in the .pdf file "Quintin Fox Coopzone.pdf."

OnCoop's guide to work through self assessment.

OnCoop FactSheet on Working with Consultants

OnCoop FactSheet on Financing Your Co-op

OnCoop FactSheet on Using the Seven Co-operative Principles in Practical Ways.

Link to OnCoop factsheet on Co-ops and Government.

A discussion paper has been developed by the German standards setter and published by the European Financial Reporting Advisory Group (EFRAG) on behalf of Pro-active Accounting Activities in Europe (PAAinE).
 
This paper sets out an alternate approach which defines financial instruments as equity (or not) based on the extent to which they can expect to absorb losses. It looks at equity in terms of an “equity buffer” which can absorb loss, allowing the business to continue and meet its debt and creditor obligations. This approach would define co-operative member shares (potentially including those that do not have a claim on the residual net assets) as equity. The following co-op example is taken from the paper:
 
IE10 Share puttable, exercise limited to par (cooperative bank)
 
Fact pattern:
 
·          Entity J issues puttable shares, repayable at par at the holder’s request.
·         Entity J has reserves of 100m CU.
·         Accounting losses are deducted from reserves, but if losses are sufficient to deplete the reserves, further losses are allocated pro-rata amongst shares then in issue, so a member’s claim after depletion of the reserves is reduced.
·         The claim of the shareholder is then for the par value less her/her share of further losses after reserves are depleted.
 
Analysis
 
The entity is able to absorb losses of 100m plus the shares in issue before a shortfall arises
 
Result: Equity
 
 
This discussion paper is well worth a read and sets out a good case for abandoning the current IAS 32 and proposed FASB approaches and instead adopting the Loss Absorption Approach. It is a comprehensive, coherent, well made case and the best response I’ve seen so far to the prevailing view.
 
You can download copies from the EFRAG website at:
 
http://www.efrag.org/news/detail.asp?id=155
 
All the best
 
John Maddocks

OnCoop have developed a list that defines many of the common acronyms, nicknames and short forms that are used in the co-op and credit union sector:

Guide to housing co-operatives.

Guide to renewable energy co-operatives.

OnCoop FactSheet on childcare co-operatives.

Using the 7 International Principles of Co-operation in Practical Ways

Fact sheet explaining Director's Liabilities in the role of a co-operative.

Excerpt:

Introduction 

For-profit vs. not-for-profit co-operatives

 Excerpt:

 Introduction 

The concept of not-for-profit vs. for-profit is one that can often be challenging for groups and organizations when considering a corporate structure for their group.  Not-for-profit status can often be  confusing because it has a particular connotation related to   income tax, which requires filing information with different government departments or agencies than those that apply to for-profit business and the operations of a for-profit business.  With co-ops, not-for-profit status is less closely tied to corporate form than for typical not-for-profit corporations, which has   practical impacts for groups to consider. 

Share capital vs. non-share capital co-ops.

 Excerpt:

Introduction 

Under the Ontario Co-operative Corporations Act, co-operatives have two different forms to choose from when incorporating: with share capital and without share capital. Each structure offers different options and benefits for raising money or carrying on operations. For the most part, this decision will be made based on the purpose of the co-operative and what types of financing are required. 

Fact sheet on co-operatives operating as charities.

 Excerpt:

Introduction 

Co-operatives can operate as either not-for-profit or for-profit organizations, and in some cases, they may wish to operate with charitable status. Charities are organizations that meet the Canada Revenue Agency’s legal and administrative standards of charitable work, and must be operated solely for public benefit.  If a co-op wishes to operate as a charitable organization, there are some specific things that must be done during incorporation and while the co-op operates in order to maintain both its co-operative and   charitable status. 

What is the difference between a co-op and a not-for-profit corporation?

 Excerpt:

Introduction 

Co-operatives are a unique type of business model that share some commonalities with both private corporations and not-for-profit organizations but there are some key differences between the three types of organizations in how they are organized and carry on activities.  In the case of co-ops and not-for-profit organizations (also called NFP organizations or NFPs), there are some similarities in their structures and in some cases, their tax status, but there are also differences in their organizational setup and how members benefit and are involved. 

Federal vs. Provincial incorporation for co-ops

How to incorporate a co-operative in Ontario

Excerpt:

Fact sheet introduction to all-things Co-op.

 Excerpt:

Introduction 

A co-operative, or co-op, is an organization that is owned by its members. Co-ops are formed when a group of individuals come together to meet a common need - co-ops can provide almost any type of product or service imaginable and can operate either on a not-for-profit or for-profit basis. A co-op operates on a democratic system that specifies “one member, one vote”. This ensures that all members of the co-op have an equal say in how the co-op is run, regardless of how much money they have invested in the co-op or how much they use the services offered. 

A guide to the business resources available through the Government of Canada.

This Factsheet explains the New Generation Co-operative structure and will help you determine if it is suitable for you.

New Generation Cooperatives: What, Why, Where, and How An Internet Guide

FAQ on New Generation Co-ops

U.S. Department of Agriculture, Rural Business Cooperative Service.

A list of forms required by the Government of Alberta for various businesses, including but not limited to fair trade and co-operative based business.

Business plan guide for the agri-food sector