STANDARD CHART OF

ACCOUNTS FOR
COOPERATIVES
MC-2009-04
FOR REVISION

SCOPE

This shall be applied in the

accounting and financial reporting of
all types of cooperatives, duly
registered with the Authority
pursuant to RA 9520.

OBJECTIVES
Provide

Guidelines in the use of

ACCOUNT and ACCOUNT
TITLES in the preparation of
financial statements.

Objectives

Ensure uniformity and common

understanding of accounts

Guide in the installation of

accounting and internal control
systems;

Facilitate

Enhance
Sets

the conduct of audit;

transparency;

standards and discipline in

measuring the financial safety and
soundness;

Facilitate

the analysis and evaluation

of financial management
performance; and

Provide

basis in monitoring
supervision and business linkages.

WHAT IS A CHART OF
ACCOUNTS
Listings

of Account Titles to be Used

as Reference in Recording Business
Cooperative Transactions.

FINANCIAL STATEMENTS
Statement

Of Financial Condition
(Balance Sheet)
Statement Of Operation (Income
Statement)
Statement Of Changes In Equity
Cash Flows Statement
Notes to Financial Statements

THE CHART OF
ACCOUNTS
STATEMENT OF FINANCIAL
CONDITION

ASSETS ACCOUNTS
are resources controlled by the
cooperative as a result of past events
and from which future economic
benefits are expected to flow to the
cooperative.

CURRENT ASSETS
Cash and other assets that are reasonably
expected to be realized in cash or intended
for sale or consummation within twelve
months after the balance sheet date, or the
normal operating cycle of the business --

CASH AND CASH

EQUIVALENT
Cash and Short term, highly liquid
investments, and held to meet shortterm cash commitments rather than for
investment purposes. An investment
normally qualifies as a cash equivalent
only when it has a short maturity of,
say, three months or less from the date
of acquisition.

Composition-Cash & Cash

Equivalent
Cash

On Hand
Petty Cash Fund
Revolving Fund
Change Fund
Checks and Other Cash Items
(COCI)

Composition-Cash & Cash

Equivalent
Cash

in Bank
Cash in Cooperative
Federation

Revolving Fund

Amount set aside to cover

disbursements for recurring
transactions maintained under the
imprest system. This may include
emergency purchases, withdrawal of
deposits, release of loan proceeds,
etc. The amount to be set up shall be
determined by the BOD.

Checks and Other Cash Items

Refers to dated checks, postal money

orders and demand drafts awaiting
deposits.

Cash In Cooperative Federation

Refers to money deposited in the
federations to which they are
affiliated, i.e. Savings and time
deposit which are unrestricted and
readily available when needed. A
subsidiary ledger shall be
maintained for each account

LOANS AND RECEIVABLES

These refer to financial assets with
fixed or determinable payments that
are not quoted in an active market. A
receivable is recognized for the
difference between the gross
receivable and the related unearned
interest income.

Composition- Loans &

Receivables
Loans

Receivables - Current
Loans receivables - Past Due
Loans Receivable Restructured
Loans Receivable in Litigation

Composition- Loans &

Receivables

Unearned Interest and Discounts

Allowance for Probable Losses on

Loans

Composition- Loans &

Receivables
Accounts Receivable Trade
Current
Accounts Receivable Trade Past
Due
Accounts Receivable Trade
Restructured
Accounts Receivable Trade In
Litigation

Composition- Loans &

Receivables
Allowance

For Probable Losses

On Accounts Receivable Trade

Composition- Loans &

Receivables

Installment Receivable Current

Installment Receivable Past Due

Installment Receivable Restructured

Composition- Loans &

Receivables

Installment Receivable In
Litigation

Allowance For Probable Losses On

Installment Receivables

Unrealized Gross Margin

Sales Contract Receivables

refers to amortized cost of the

receivable arising from installment
sale of assets acquired in settlement
of loans/accounts.

Allowance For Probable Losses

Sales Contract Receivables

Advances To Officers,
Employees And Members
Due From Accountable Officers
And Employees
Finance Lease Receivables
Allowance for Impairment-FLR
Other Current Receivables

Finance Lease Receivables

This account refers to current
portion of the long term lease
receivables arising from sale of
goods/property under finance
lease agreement.

FINANCIAL ASSETS
Financial Assets

at Fair Value Through

Profit and Loss This account refers
to financial assets with quoted
market price in the form of debt or
equity securities that are held for
trading purposes

FINANCIAL ASSETS

Financial Assets at Cost financial assets

in the form of debt or equity securities
which are not quoted in an active market
and are expected to be realized in cash
within one year from the reporting
period (net of impairment).

INVENTORIES
These are assets (a) held for sale
in the ordinary course of
business b) in the process of
production for such sale or c) in
the form of materials or supplies
to be consumed in the
production process or in the
rendering of services.

Composition- Inventory
Merchandise Inventory
Repossessed Inventories
Spare Parts / Materials And
Other Goods Inventory
Raw Materials Inventory
Work In Process Inventory
Finished Goods Inventory

Composition- Inventory
Agricultural Produce
Equipment For Lease Inventory
Allowance For ImpairmentInventory
Biological Assets

Agricultural Produce
This account refers to the harvested
product of the biological assets
and shall be measured at cost.

Equipment for Lease

Inventory
This account refers to cost of
equipment on hand intended for
lease purchase agreement.

Allowance for Impairment Inventory

This account refers to allowance
set aside to provide for
impairment losses on inventory.
This is a contra account to
Inventories.

Biological Assets
This account refers to the cost of
living animals and plants that are
intended for sale. This shall be
measured at cost.

Other Current Assets

This account refers to any other
current assets which are expected
to be realized, consumed within
the year.

Composition- Other Current

Assets
Input

Tax
Creditable Vat
Creditable W/holding Tax
Deposit To Supplier
Unused Supplies
Prepaid Expenses
Assets Acquired in Settlements of
Loans/Accounts
Accum Depreciation-A/A

NON CURRENT ASSETS

All

other assets not classified as

current to include tangible,
intangible, operating and financial
assets of a long term nature.

FINANCIAL ASSETS LONG

TERM

Financial Assets at Cost assets in the

form of equity securities which are not
quoted in an active market and are
expected to be realized in more than one
year from reporting period. (net of
impairment)

FINANCIAL ASSETS LONG TERM

Financial assets at Amortized cost

financial assets in the form of debt
securities which are expected to be
realized in more than one year from the
reporting period.

Investment In Subsidiaries
Refers

to the amount of the

cooperatives investment in the
equity instrument of non
cooperative subsidiaries
(ownership is more than 50% of
the voting shares)

Investment in Associates

The amount of coops investment in

the equity instruments of associates
(ownership is 20% - 50% of the
voting shares)

Investment in Joint Ventures

The amount of coops investment in

shares of stocks of joint ventures
evidenced by contractual agreement
that gives the venturers joint control.

INVESTMENT PROPERTY

Real property either land or building or

part of building , or both held by the coop
to earn rentals or for capital appreciation
or both, rather than for a) use in the
production or supply of goods or
services or for administrative purposes or
b) sale in the ordinary course of business.

Investment Property Land

refers to the cost of land that generate

income or for capital appreciation or
both, not used in the production of goods,
supply or services nor for administrative
purposes or sale in the ordinary course
of business. To be recorded at cost but
fair value should be disclosed at balance
sheet date.

Investment Property Building

Refers to the cost of building that

generate income or capital appreciation
or both, not used in the production of
goods, supply or services nor for
administrative purposes or sale in the
ordinary course of business measured at
cost and subject to depreciation.

Accumulated Depreciation- Investment

Property -Building

REAL PROPERTIES
ACQUIRED (RPA)
real properties acquired in
settlement of loans/accounts
receivables through
foreclosure or dacion en
pago.
Accumulated Depreciation RPA

Property, Plant and

Equipment
are tangible assets that a) are
held for use in the production of
good or supply of goods or
services, or for rental to others
or for administrative purposes
and b) are expected to be used
for more than one period

COMPOSITION-PPE

Land
Accumulated Impairment Loss

Land Improvements
Accumulated Depreciation
Land Improvements

COMPOSITION-PPE
Building And Improvements
Accumulated Depreciation
Building And Improvements

Building On Leased/ Usufruct Land

Accumulated Depreciation Bldg.
On Leased/Usufruct Land

COMPOSITION-PPE
Utility Plant
Accumulated Depreciation Utility
Plant

Property, Plant And Equipment

Under Finance Leased
Accumulated Depreciation PPE
Under Finance Leased

COMPOSITION-PPE

Construction In Progress

Furniture, Fixtures & Equipment

Accumulated Depreciation FFE

Machineries, Tools And Equipment

Accumulated Depreciation - MTE

COMPOSITION-PPE
Kitchen, Canteen & Catering
Equipment/ Utensils
Accumulated Depreciation
KCCE/U

Transportation Equipment
Accummulated Depreciation=TE

COMPOSITION-PPE
Lines And Uniforms
Accumulated Depreciation L&U

Nursery and Greenhouses

Accumulated Depreciation- N&G

Leasehold Rights and Improvements

Accumulated Depreciation-LR&I

Nursery/
Greenhouses
This account refers to the cost of
nursery and greenhouse facilities
and equipment used for seedling
production and growing of
vegetables

Accumulated Depreciation Nursery/Greenhouse

This account refers to total
amount of depreciation and
impairment on nursery and
greenhouse that are set-up
periodically and charged against
the current operations.

Leasehold Rights &

Improvements
This account refers to the cost of
improvements on premises under
operating lease including cost of
rights and concession rights
which are subject to amortization
over the useful life of the property
or the term of the lease, whichever
is shorter.

BIOLOGICAL ASSETS

Composition-Biological Assets
Biological Assets Animals
Accumulated Depreciation
Biological Assets Animals

Biological Assets Plants

Accumulated Depreciation
Biological Assets - Plants

Intangible Assets
Identifiable non-monetary asset
without physical substance for
which future economic benefits
are expected to flow back and
amortized over the estimated
useful life or legal life whichever
is shorter.

Composition-Intangible Assets

FRANCHISE

FRANCHISE COST

COPYRIGHT

PATENT

Other NonCurrent Assets

Assets which do not fit into any
of the preceding classifications

COMPOSITION- Other Non

Current Assets
Computerization Cost
Other Funds And Deposits
Due from Head/Branch Office
Deposit on Returnable
Containers
Miscellaneous Assets

Other Funds and Deposits

This account refers to restricted
funds set aside for funding of
Statutory and other reserves
such as Retirement, Members
Benefit and Other Funds. This
may be in the form of time
deposit or other securities
which may be convertible to
cash when needed.

LIABILITIES
are present obligations of the
coop arising from past events , the
settlement of which is expected to
result in an outflow from the
coop resources embodying
economic benefits.

CURRENT
LIABILITIES
Obligations reasonably expected
to be settled within the normal
business operating cycle, that: (a)
is due within 12 months after
balance sheet date; (b) is held
primarily for the purpose of
being traded;

(c) does not have an

unconditional right to defer

settlement of the liability for at
least 12 months after balance
sheet date.

Composition-Current Liabilities
Savings Deposits
Time Deposits
Accounts Payable Trade
Accounts Payable Non-trade
Loans Payable Current
Finance Lease Payable
Current

Composition-Current
Liabilities

Due To Regulatory Agencies

Due to Deployed Members
Cash Bond Payable
SSS/ECC/Philhealth/ Pag-ibig
Premium Payable
SSS/Pag-ibig Loans Payable

Composition-Current Liabilities

Withholding Tax Payable

Output Tax
Vat Payable
Income Tax Payable
Accrued Expenses
Deposit from Customers
Advances from Customers
School Program Support Fund
Payable

School Program Support

Fund Payable
This account refers to an amount
allocated as support mechanism
to school program, which
remains unpaid. (applicable to
public school - based
cooperatives only)

Composition-Current
Liabilities
Interest On Share Capital Payable
Patronage Refund Payable
Due to Union/Federation (CETF)
Other Current Liabilities

NON-CURRENT
LIABILITIES
Liabilities payable beyond one
year

Composition-Non Current
Liabilities
Loans Payable
Discounts On Loans Payable
Revolving Capital Payable
Retirement Fund Payable
Finance Lease Payable Long
Term

Revolving Capital Payable

The account refers to deferred
payment of interest on share
capital and patronage refund,
which should be agreed upon in
the General Assembly.

Other Non-Current
Liabilities
All other liabilities that cannot
be classified after any of the
preceding liability accounts.

Composition-Non Current
Liabilities
Project Subsidy Fund
Members Benefit And Other
Funds Payable
Due To Head Office, Branch Or
Subsidiary
Other Non-current Liabilities

Project Subsidy Fund

Refers to the unused portion of the

donation/grant for training, salaries
and wages, etc.

Members Benefit and Other

Funds Payable
Refers

to funds for special

purposes such as members
benefits, including KBGF/Coop
Guarantee Fund not part of the
allocation of net surplus.

EQUITY
is the residual interest in the
assets of the coop after
deducting all its liabilities.

MEMBERS EQUITY
This account refers to
ownership Interest of
members in the
cooperative.

COMPOSITIONMEMBERSEQUITY
Authorized Share Capital
Common
Unissued Share Capital
Common
Subscribed Share Capital
Common
Subscription Receivable Common

COMPOSITIONMEMBERSEQUITY
Paid-up Share Capital
Common
Treasury Shares Capital
Common

COMPOSITIONMEMBERSEQUITY
Authorized Share Capital
Preferred
Unissued Share Capital
Preferred
Subscribed Share Capital
Preferred
Subscription Receivable Preferred

COMPOSITIONMEMBERSEQUITY
Paid-up Share Capital
Preferred
Treasury Share Capital
Preferred
Deposit For Share Capital
Subscription

Undivided Net Surplus

Net Loss

Deposit for Share Capital

Subscription
This account refers to amount paid by
the members for capital subscription
equivalent to the value of less than one
share and additional subscriptions in
excess of authorized capital pending
approval of the amendments to
increase Authorized Share Capital.

Deposit for Share Capital

Subscription
This may also include the amount of
share capital paid but not yet covered
by subscription contract. Subsidiary
ledgers shall be maintained for this
account.

Undivided Net Surplus

This account refers to the
accumulated net surplus of the
cooperative that is allocated and
distributed at the end of each
reporting period in accordance
with Article 86 of RA 9520. This
account is used for Interim
Financial Statement Presentation
only.

Net Loss
This account refers to temporary
account to record losses in
operations incurred during the
reporting period. Net loss for the
year shall be charged against
reserve fund, subject to
provisions of Article 86 of RA
9520.

Donations/Grants
This account refers to assistance
by another entity in the form of a
transfer of resources to
cooperative in return for past or
future compliance with specified
conditions relating to the
operating activities of the
cooperative.

Statutory Funds
Mandatory funds established/set
up in accordance with Article 86
of RA9520

COMPOSITION- Statutory
Funds
Reserve Fund
Cooperative Education &
Training Fund
Community Development Fund
Optional Fund

REVALUATION SURPLUS

Refers to the appraisal increase in the

revaluation of land which are allowed
subject to the guidelines issued by the
Authority.

STATEMENT OF
OPERATIONS

REVENUE ITEMS
. are income arising from the
ordinary activities of a coop and
is referred to by a variety of
names including sales, service
income, interest, dividends ,
royalties and rent.

Income from
Credit Operations
All income derived from Credit
Operations

COMPOSITION-Income from
Credit Operations
Interest Income From Loans
Service Fees
Filing Fees
Fines, Penalties Surcharges

Fines, Penalties,
Surcharges
This account refers to the fees
imposed and collected by the
cooperative on the delayed
amortization payments of the
member-borrower.

Income from
Service Operations
All income derived from service
operations

Composition- Income from

Service Operations
Service

Income
Interest Income From Lease
Agreement

Service Income
This account refers to the amount
collected for various services
rendered.

Interest Income from Lease

Agreement
This account refers to interest
earned arising from lease of
assets under Finance Lease
Agreement.

Income from Marketing/

Consumers/Production
Operations
All income derived from
marketing / consumers /
production operations.

Composition- Income from

Marketing/Consumers/ Production
Operations
Net Sales
Sales
Installment Sales
Sales Return And Allowances
Sales Discounts

Sales Discounts
This account refers to deductions
allowed to customers for
settlement/ prompt payment of
their accounts

Other Income
Income received by the
cooperatives other than its main
operation.

Composition- Other Income

Income/Interest From
Investments/Deposits
Membership Fees
Commission Income
Realized Gross Margin
Miscellaneous Income

Realized Gross
Margin
This account refers to income
earned by the cooperative from
the installment sales of real
estate.

Cost of Goods
Sold- Consumers/
Marketing/Producers Operation
The cost/value of commodity
sold as determined using
physical or perpetual inventory
system.

Composition- Cost of Goods Sold

Consumers/ Marketing/
Production Operations

Cost Of Goods Sold

Purchases
Raw Material Purchases
Purchase Returns And
Allowances
Purchase Discounts

Composition- Cost of Goods Sold

Consumers/ Marketing/
Production Operations

Freight In
Direct Labor
Factory/Processing Overhead
Inventory Loss

Inventory Loss
This account refers to reduction
in inventory due to spoilage,
breakage and variance between
inventory per books and per
count

Cost of Services
All costs incurred that are
directly related to the generation
of power, water and other
services (A separate subsidiary
shall be maintained)

Composition- Cost of Services

Project Management Cost
Labor & Technical
Supervision
Salaries and Wages
Employees Benefits
SSS/Philhealth/Pagibig Cont.
Retirement Benefit Expenses

Composition- Cost of Services

Professional And
Consultancy Fees
Supplies
Power, Light and Water
Insurance
Repairs and Maintenance

Composition- Cost of Services

Rentals
Gas, Oil And Lubricants
Miscellaneous Expenses
Depreciation
Amortization

Project Management Cost

This account refers to all costs
incurred that are directly related
to the projects and contract
entered into by clients like
manpower servicing, construction
and other professional works,
including consulting fee.

Generation Cost
Cost incurred in the generation of
power, water and other utilities

Composition-Generation
Cost
Power Cost
Labor And Technical
Supervision
Salaries And Wages
Employees Benefits
Sss, Philhealth, Pag-ibig
Contribution

Composition-Generation
Cost
Retirement Benefit Expenses
Miscellaneous Expenses
Professional And Consultancy
Fees
Supplies
Power, Light And Water

Composition-Generation
Cost
Insurance
Repair And Maintenance
Rentals
Gas, Oil And
Lubricants
Depreciation
Amortization
Impairment Loss

Distribution Cost
Cost incurred in the distribution
of power, water and other
services.

Composition- Distribution
Cost

Power Cost
Labor And Technical
Supervision
Salaries And Wages
Employees Benefits
Sss, Philhealth, Ecc, Pag-ibig
Contribution
Retirement Benefit Expense

Composition- Distribution
Cost

Professional And Consultancy

Fees
Supplies
Training/Seminars
Power, Light And Water
Travel And Transportation

Composition- Distribution
Cost
Insurance

Repairs And Maintenance

Rentals
Communication
Gas, Oil And Lubricants
Miscellaneous
Depreciation
Amortization
Impairment Loss

Transport
Service Cost
All costs incurred that are
directly related to Service
Income and Passenger's Fee. (A
separate subsidiary shall be
maintained)

Composition-Transport
Service Cost
Drivers/Conductors Fees
Vehicle Registration And
Licensing
Expenses
Toll Fees
Incidental Expenses
Insurance Expenses

Composition-Transport
Service Cost
Repair And Maintenance
Depreciation
Provision For Fortuitous Events
And Accidents

Incidental Expenses
This account refers to expenses
incurred to cover the cost of
expenditures which are not
anticipated / expected such as
accidents not covered by
insurance

EXPENSES
Gross outflows of economic
resources and incurrence of
obligations in the course of the
ordinary activities of the
cooperative when those outflows
result in decreases in surplus.

Financing Cost
Expenses related to borrowings
of funds used for operations

Composition-Financing Cost
Interest Expenses On
Borrowings
Interest Expenses On Deposits
Other Financing Charges

Selling/ Marketing Cost

Costs incurred in the
promotion/distribution and
selling of products and services
of the cooperatives.

Composition- Selling/
Marketing Cost

Product/Service Marketing And

Promotion Expenses
Product/Service Development
Product Research
Salaries And Wages
Incentives & Allowances

Composition- Selling/
Marketing Cost
Employees

Benefits
SSS, Philhealth, ECC, Pag-ibig
Premium Contributions
Retirement Benefit Expenses
Commission Expenses
Advertising & Promotion

Composition- Selling/
Marketing Cost
Professional Fees
Royalties
Store/Canteen/Kitchen And
Catering Supplies Expenses
Breakage & Losses On Kitchen
Utensils
Freight Out/ Delivery Expenses

Composition- Selling/
Marketing Cost
Spoilage, Breakage And Losses
Storage/Warehousing Expenses
Power, Light And Water
Travel And Transportation

Composition- Selling/
Marketing Cost
Insurance
Repair And Maintenance
Rental
Taxes, Fees And Charges
Communication
Representation

Composition- Selling/
Marketing Cost
Gas, Oil And Lubricants
Miscellaneous Expenses
Depreciation
Amortization
Amortization Of Leasehold
Rights & Improvements
Periodicals, Magazines &
Subscription

Administrative
Cost
Expenses incurred related to
general administration and
management of the
cooperative/enterprise.

Composition- Administrative
Cost
Salaries And Wages
Employees Benefits
SSS, Philhealth, ECC, Pag-ibig
Premium Contribution
Retirement Benefit Expenses

Composition- Administrative
Cost
Officers Honorarium And
Allowances
Litigation Expenses
School Program Support
Office Supplies
Meeting And Conferences

Composition- Administrative
Cost
Training And Seminars
Power, Light And Water
Travel & Transportation
Insurance
Repair & Maintenance
Rental

Composition- Administrative
Cost
Taxes, Fees & Charges
Communication
Representation
Gas, Oil And Lubricants
Collection Expenses
General Support Services

Composition- Administrative
Cost
Miscellaneous Expenses
Depreciation
Amortization
Amortization Of Leasehold
Rights And Improvements
Provision For Probable Losses
on Accounts/Installment
Receivables

Composition- Administrative
Cost
Provision For Losses Others
Impairment Losses
Bank Charges
General Assembly Expenses
Members Benefit Expenses
Affiliation Fees
Provision for CGF

School Program Support

This account refers to an amount
allocated by the cooperatives as
support mechanism to school
program such as school food
supplementation of identified undernourished cases and administration
contingency fund, outreach program
and school development, etc.
(applicable to school based
cooperatives for canteen activity
only)

Other Items Subsidy/

Gain (Losses)
Special transactions
arising from the operations
of the cooperatives.

Composition-Other Items
Project Subsidy
Donation And Grant
Subsidy
Optional Fund Subsidy
Subsidize Project Expense

Composition-Other Items
Gain

Or Loss On Sale Of
Property & Equipment
Gain Or Losses In Investments
Gain Or Losses On Sale Of
Repossessed Items
Gain Or Losses From Foreign
Exchange Valuation
Prior Years Adjustments

Donation and Grant

Subsidy
This account refers to an amount
deducted from Donation and
Grant to subsidize depreciation
charges on property and
equipment funded by donation
and grant.

Optional Fund Subsidy

This account refers to an amount
deducted from Optional Fund to
subsidize depreciation charge of
property and equipment funded
by Optional Fund.

Subsidized Project
Expenses
This account refers to portion of
the Project Subsidy Fund
expended for training, salaries
and wages and other activities
subsidized by donations and
grants and optional fund.

Gains or Losses from

Foreign Exchange
Valuation
This account refers to gains or
Losses arising from retirement or
conversion of foreign currency
exchange rate fluctuation per
actual transaction.

Prior Years Adjustment

This account refers to
adjustments on transactions
affecting income and expenses
incurred in the previous year(s)
which are taken up on the
current year.