Where do cooperative liabilities arise from?

Cooperative liabilities are specified in Clause 1, Article 14 of Circular 83/2015/TT-BTC as follows. following:

Liability management

1. Liabilities arising from borrowing or arising in the process of buying and selling materials, products, goods, and services must be classified according to debt objects and nature of debt, including: Payables to credit institutions, payables to sellers, payables to the State, payables to members, member cooperatives, employees and other payables and payables.

2. Cooperatives and cooperative unions must open detailed and complete books of debts payable according to each creditor, loan content, loan term and each payment.

3. Pay outstanding debts on time as committed. Regularly review, evaluate, and analyze debt repayment capacity, early detect difficult situations in debt payment to have timely solutions to avoid overdue debts arising. Debts that do not have to be paid or have no object to pay are accounted as income.

Thus, according to regulations, liabilities of cooperatives arising from borrowing or arising during the process of buying and selling materials, products, goods and services must be classified according to debt objects and debt nature, including:

– Payables to credit institutions;

– Payable to the seller;

– Must pay to the State;

– Payable members;

– Payable to employees;

– Other payables and payables.

In what cases are cooperative liabilities recorded as an increase in income?

Recording an increase in income for cooperative debts is specified in Clause 3, Article 19 of Circular 83/2015/TT-BTC as follows:

Management of revenue and other income

…

3. Other income includes revenues from liquidation, sale of fixed assets, insurance compensation, and payable debts that now have no creditors are recorded as an increase in income; collect fines from customers due to contract violations, intellectual property value, copyright accepted by the party receiving capital contribution, recorded as other income of cooperatives, cooperative unions and other revenues according to the provisions of law.

4. All revenues must be measured in money. In case of collection in the form of goods, services, or barter, it must be calculated into money at the time of payment or acceptance of payment to account for revenue.

5. All revenue generated during the period must have invoices and documents and must be fully and promptly reflected in the accounting books according to the provisions of accounting law.

6. Cooperatives and cooperative unions must separately monitor and account for revenue that is exempted or reduced from corporate income tax.

Thus, according to regulations, for cooperative debts that no longer have creditors, an increase in income is recorded.

What accounts receivable in cooperatives include?

Receivable debts in cooperatives are specified in Clause 1, Article 13 of Circular 83/2015/TT-BTC as follows:

Receivables management

1. Debts receivable in cooperatives and unions of cooperatives include:

a) Receivables from members and member cooperatives: Is the value of products, goods and services sold and provided to members and member cooperatives, but have not been paid.

b) Receivables from customers: Is the value of products and services sold and provided by cooperatives and unions of cooperatives. to customers, but have not been paid.

c) Receivables in internal credit activities: Are internal loans in cooperatives and cooperative unions (both principal and interest).

d) Other receivables according to the provisions of law.

2. Cooperatives and cooperative unions must open detailed tracking books for each debtor, debt content and each payment; Regularly classify debts (revolving debts, bad debts, irrecoverable debts), and urge debt collection. For debts receivable in kind, cooperatives and cooperative unions need to monitor both in kind and value to preserve capital when prices fluctuate.

For receivable debts from customers with regular transaction relationships, periodically check and compare the receivable amount, collected amount, remaining amount and confirm the debt with the cooperative and cooperative union in writing.

Thus, according to regulations, receivable debts in cooperatives include:

– Receivables from members: The value of products, goods, and services sold and provided to members but not yet paid.

– Receivables from customers: The value of products and services sold and provided by the cooperative to customers, but not yet paid.

– Receivables from internal credit activities: Are internal loans within the cooperative (both principal and interest).

– Other receivables as prescribed by law.