"April 21, 2016-COOPERATIVE NEWS: BUDGET PAPERS AMPLE SPACE to peculiarities"

Posted by on Apr 21, 2016

Published on the website of CNDCEC the notebook on "the peculiarities of cooperative societies in the preparation of financial statements and business management", which contains useful information concerning the preparation of financial statements of these mutual funds, drawn up by the Commission for the study of national accounting standards of the National Council of certified public accountants.

The document covers, in particular, the mutuality, rebates, a typical example of realization of mutuality, reserves and social loans, with particular reference to its placement in the financial statements, reporting a summary of the tax treatment of these particular entities.

With regard to mutual purpose, please note that the legislator has introduced reformer in the civil code, with the Decree. 6/2003 (in force as from 1 January 2004), certain rules (especially those included 2512 2513 2514, and within articles) intended to bring out the ' prevalently mutual ', necessary for the recognition of numerous tax concessions.

The document of the Committee on the study of national accounting of CNDCEC (diary April 2016), in addition to analyzing the contents of the same provisions, in order to verify ownership, provides precise and punctual indications on the information to be included within the budget documents, with particular reference to the notes, given the presence of an editorial inhomogeneities implemented until now by the operators of the sector as well as numerous examples and diagrams to be inserted within the same budget documents.

As a result of the indicated, just in terms of mutuality and operation of institutions, the most important information concerning the structure of the cooperative, with particular reference to the type of members present, the management criteria followed for the achievement of mutual goals, methods of training and allocation of rebates, relations with shareholders, how data relating to reserves with particular reference to legal immigration and indivisible, and social loans.

The document, however, with reference to the information required by paragraph 22 bis), paragraph 1, article 2427 cod. CIV. (related party transactions) shows that, due to the peculiar operation of those institutions and mutual relationship between the safe presence of managers and Directors-members of the institution, which manufactures cost effective operations against these subjects, the related information should not be provided in the notes.

With reference to the "rebates" (Article 2545-e cod. CIV.), the book highlights the different modes of distribution and its tax treatment, indicating the impersonation mode accountant. Is reminded of the possible and alternative placement of rebates in the aggregate "/1" or "A/5 in the aggregate consumer cooperatives" and/or users, as suggested by the National Board of certified public accountants (document of 2006) and certain cooperatives, confirming however the equalisation tax, regardless of the different mode of assignment (as part of income or as the target of profit).

On the first question, the notebook, in anticipation of the application of the changes that have taken place since last January 1, concerning the disappearance of exceptional site, suggests placing rebates, even for consumer or user cooperatives, within the aggregate "/1".

In fact, we read in the footnote to its period in that discussion that "indicated in the text, in view of budgetary discipline, evolutionary thought of inserting into the voice to a series of positive components 5. income having up to the budgets for the year 2015 nature" extraordinary "(…) can be considered plausible, if such behavior facilitates the reading of the budget, predict the enrollment of rebates, adjustment of heading a. 1, sales of goods and services. This setting affects the amount of revenue to be used for calculating the prevalently mutual under 2513, c.c. ".

The book also examines, for each type, the reserves potentially present in cooperatives, pointing to relevant information, pursuant to paragraph 1, article 2427 cod. CIV., in particular, is training, use, composition, origin and distribution of same, bearing in mind the indications provided by the OIC 28.

The paper concludes the treatment by analyzing the "social lending", representing a typical form of financing cooperatives, which is accomplished with the contribution, repayable capital by shareholders, taking into account that the proceeds must only be used for the achievement of corporate objectives, and that there are no limits, both in terms of the maximum threshold of deposit by each Member in terms of remuneration (interest rate payable), highlighting the necessity that the collection is carried out at persons entered in the register of shareholders for at least three months (ICRC headquarters resolutions and circulars of the Bank of Italy).

In the final part of this section, the book examines the rules introduced for the protection of Member's subscriber savings, noting that social loans are monitored by external auditors (or cooperative stations), and is an extremely analytical, different types of lenders, including fiscal discipline, both with respect to the deductibility of the interest entity that the implementation of source-withholding tax (26%) , also indicating the amount of stamp duty and stamp duty related to the issuance of documents related to the loan, such as contracts, booklets, annual receipts and communications.