UNDERSTANDING COOPERATIVE: PURPOSES AND ITS PECULIARITIES
UNDERSTANDING COOPERATIVE: PURPOSES AND ITS PECULIARITIES
By: JOSEPHINE P. YOPO, CPA, MBA
And
ORLANDO A. FERNANDEZ, CPA, LLB, MBA-TEP
On July 28, 2008, Republic Act 9520 AN ACT AMENDING THE COOPERATIVE CODE OF THE PHILIPPINES TO BE KNOWN AS THE “PHILIPPINE COOPERATIVE CODE OF 2008” AN ACT AMENDING THE COOPERATIVE CODE OF THE PHILIPPINES TO BE KNOWN AS THE “PHILIPPINE COOPERATIVE CODE OF 2008” was promulgated.
It is the declared policy of the State to foster the creation and growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing people power towards the attainment of economic development and social justice. The State shall encourage the private sector to undertake the actual formation and organization of cooperatives and shall create an atmosphere that is conducive to the growth and development of these cooperatives.
Autonomy and Independence — Cooperatives are autonomous, self- help organizations controlled by their members. If they enter into agreements with other organizations, including government, or raise capital from external sources, they shall do so on terms that ensure democratic control of their members and maintain their cooperative autonomy.
Taking into account the above matters, Cooperatives are supposedly created and established for the betterment of the lives of its members. Therefore, it is necessary that Cooperatives through its Board of Directors minimize Financial Risks.
Financial Risk Management Objectives and Policies
The Cooperative is exposed to credit, liquidity, and other risks that arise in the normal course of its business. Its risk and control framework includes a focus on minimizing negative effects on the Company 's financial performance due to unpredictability of financial markets that drives the risks.
THE COOP SHOULD CREATE A RISK MANAGEMENT COMMITTEE
CHAPTER V, ART. 60. Tax Treatment of Cooperatives. — Duly registered cooperatives under this Code which do not transact any
By: JOSEPHINE P. YOPO, CPA, MBA
And
ORLANDO A. FERNANDEZ, CPA, LLB, MBA-TEP
On July 28, 2008, Republic Act 9520 AN ACT AMENDING THE COOPERATIVE CODE OF THE PHILIPPINES TO BE KNOWN AS THE “PHILIPPINE COOPERATIVE CODE OF 2008” AN ACT AMENDING THE COOPERATIVE CODE OF THE PHILIPPINES TO BE KNOWN AS THE “PHILIPPINE COOPERATIVE CODE OF 2008” was promulgated.
It is the declared policy of the State to foster the creation and growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing people power towards the attainment of economic development and social justice. The State shall encourage the private sector to undertake the actual formation and organization of cooperatives and shall create an atmosphere that is conducive to the growth and development of these cooperatives.
Autonomy and Independence — Cooperatives are autonomous, self- help organizations controlled by their members. If they enter into agreements with other organizations, including government, or raise capital from external sources, they shall do so on terms that ensure democratic control of their members and maintain their cooperative autonomy.
Taking into account the above matters, Cooperatives are supposedly created and established for the betterment of the lives of its members. Therefore, it is necessary that Cooperatives through its Board of Directors minimize Financial Risks.
Financial Risk Management Objectives and Policies
The Cooperative is exposed to credit, liquidity, and other risks that arise in the normal course of its business. Its risk and control framework includes a focus on minimizing negative effects on the Company 's financial performance due to unpredictability of financial markets that drives the risks.
THE COOP SHOULD CREATE A RISK MANAGEMENT COMMITTEE
CHAPTER V, ART. 60. Tax Treatment of Cooperatives. — Duly registered cooperatives under this Code which do not transact any
References: 1. Cooperative Development Authority (CDA) 2. RA 9520 3. Cooperative, Free Dictionary