Member economic participation: legal and account treatment of the capital on the Brazilian law

• Main Author: Mario de Conto
• Format: Article
• Language: Spanish
• Published: Universidad de Deusto 2018-12-01
• Series: Boletín de la Asociación Internacional de Derecho Cooperativo
• Subjects: cooperativas; direito cooperativo; contabilidade cooperativa
• Online Access: http://baidc.revistas.deusto.es/article/view/1430

<p>Under the Cooperative Principle of Members’ Economic Participation, members contribute equitably and democratically control the capital of their cooperative, part of which is generally owned jointly. Traditionally, the share capital was understood, from a legal-accounting point of view, as part of the net worth of the Cooperatives. Recently, the International Accounting Standards Board, through international accounting standards, understood that Social Capital should be classified as an obligation and therefore as a liability of the Cooperative. This classification has consequences, mainly due to the increase in the indebtedness indexes of these entities. Thus, this article analyzes the 3rd Principle of Cooperativism, its regulation in International Law and the accounting-legal treatment attributed to social capital in Brazil.</p><p><strong>Received</strong>: 30 May 2018<br /><strong>Aceppted</strong>: 10 October 2018<br /><strong>Published online</strong>: 21 December 2018</p>