91 paragraphs found in INT 2
A co-operative entity has issued shares to its members at different dates and for different amounts in the past as follows: (a) 1 January 20X1 100,000 shares at CU10 each (CU1,000,000); (b) 1 January 20X2 100,000 shares at CU20 …
The entity’s charter states that cumulative redemptions cannot exceed 20 per cent of the highest number of its members’ shares ever outstanding. At 31 December 20X2 the entity has 200,000 of outstanding shares, which is the highest number of members’ …
Members’ shares in excess of the prohibition against redemption are financial liabilities. The co-operative entity measures this financial liability at fair value at initial recognition. Because these shares are redeemable on demand, the co-operative …
On 1 January 20X1 the maximum amount payable under the redemption provisions is 20,000 shares at CU10 each and accordingly the entity classifies CU200,000 as financial liability and CU800,000 as equity. However, on 1 January 20X2 because of the new issue …
Following the change in its governing charter the co-operative entity can now be required to redeem a maximum of 25 per cent of its outstanding shares or a maximum of 50,000 shares at CU20 each. Accordingly, on 1 January 20X3 the co-operative entity …
Local law governing the operations of co-operatives, or the terms of the entity’s governing charter, prohibit an entity from redeeming members’ shares if, by redeeming them, it would reduce paid-in capital from members’ shares below 75 per cent of the …