Co-operatives do not always fit well into accounting frameworks designed with others in mind. Generally Accepted Accounting Principles (GAAP) and practice, focus mainly on publicly listed investor owned companies (IOCs). While non-profits, charities, and the public sector are accommodated within specific accounting standards and/or guidance, co-operatives are rarely glimpsed. Yet significant differences are to be found in the co-operative member ownership structure, and co-operative purpose, values and principles (ICA, 1995).

A voluntary international Statement of Recommended Practice (iSORP) for accounting and reporting by co-operatives has the potential to make co-operatives more visible in accounting, to encourage wide debate and to draw on the experience and knowledge held within the co-operative sector itself, providing a co-operative focus and supplementing existing GAAP.

CEARC proposes to develop a draft iSORP on accounting and reporting by co-operatives, with a view to exploring its potential. This research project aims at both building a practical accounting tool for co-operatives, while also providing a means for researching, discussing and developing a co-operative accounting perspective.

To read more, visit: http://learningwork.ca/node/241 .

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