Accounts and audits in a co-operative

Co-operatives must keep written financial records that show transactions, its financial position and performance. Records must be kept for seven years. If recorded in another language, attach an English transcript.

Small co-operatives

A small co-operative doesn’t issue shares to more than 20 members exceeding $2 million or doesn’t issue securities to the public. A small co-operative must also have at least one of the following:

total income of less than $8 million
total gross assets less than $4 million
fewer than 30 employees.

Audits

An auditor isn’t needed if the co-operative is small. However, co-operative members or Consumer and Business Services (CBS) can request an audit. Directors must then appoint an auditor.

Financial reports

Small co-operatives need to report to members within five months of the end of the co-operative’s financial year and include:

detailed income and expenditure statement
detailed balance sheet
statement of changes in equity.

A cash flow statement is also needed when a co-operative controls entities that have both:

a combined income of $750,000 or more
a value of the combined gross assets of $250,000 or more.

The financial statements must comply with Australian accounting standards and include:

financial position, performance and cash flows
figures for the previous year
statement of accounting policies.

The directors must present financial reports at the annual general meeting (AGM). Financial reports and directors’ reports must also be presented to members if at least 5% of voting members request them.

Disclosing entity co-operatives have additional reporting requirements and should consult their legal or financial adviser about these obligations.

Annual report for a small co-operative – CBS form (344KB PDF)

Lodgement fee - $91.50

Large co-operatives

Large co-operatives issue shares to more than 20 members exceeding $2 million or issue securities to the public. The co-operative must also have at least one of the following:

total income of more than $8 million
total gross assets more than $4 million
more than 30 employees.

Audits

A registered company auditor is needed for large co-operatives. The auditor must be appointed at the first annual general meeting (AGM) or by directors within one month of registration, if before the AGM.

Financial reports

Large co-operatives need to report to members and Consumer and Business Services (CBS) within five months of the co-operative’s end of financial year. Reports must comply with Australian accounting standards and include: