Cooperative is a business entity consisting of persons or legal entities with the bases of cooperative activities based on the principle of cooperation as well as a popular economic movement based on the principle of the family. Cooperative aims to improve the life of its members.
Based on such understanding, which can become cooperative members, namely:
- Individuals, that is, those who voluntarily became a member of the cooperative;
- Cooperative legal entity, which is a cooperative that are members of cooperatives who have a broader scope.
In the Statement of Financial Accounting Standard (SFAS) No.. 27 (Revised 1998), stated that the main characteristics that distinguish cooperative with other business entities, namely the cooperative members have a dual identity. Dual identity mean the owner and members of the cooperative is a cooperative service users.
Generally, cooperatives are controlled jointly by all its members, where each member has equal voting rights in every decision of the cooperative. Profit sharing co-operatives (commonly called the Business Profits or SHU) are usually calculated based on the member’s share in the cooperative, for example by doing a big dividend based on purchases or sales made by the member….




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