Accounting Standards and Co-operatives: Proposed Solutions to the Problem of AASB 132

Abstract

This paper provides the first comprehensive overview of the effect of accounting standards on co-operatives in Australia. I define what a co-operative is before outlining the legal regime in place for the application of accounting standards to co-operatives. I then outline the problems co-operatives have with current accounting standards – particularly AASB 132 - before suggesting six potential solutions. I shall conclude that the most appropriate solution is to develop a separate set of accounting standards purposefully designed for co-operative and mutual enterprises.