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Practical Handbook for Companies 2021

Equity increases and decreases

In the box [E5] of extra-cooperative results the variations in the value of the cooperative's assets which become apparent on the occasion of any alteration in their composition shall be entered, with their sign, in the box [E5] .

For these purposes, Article 22.2 of Law 20/1990 establishes that shall not be considered as capital gains:

  1. The mandatory or voluntary contributions of members and associates to the share capital, the entrance fees and the deductions in the mandatory contributions made by members, in the event of their leaving the cooperative, destined for the Mandatory Reserve Fund.

  2. The compensation by the shareholders of the company losses imputed to them.

  3. The results of the regularisation of assets when so provided by the special law authorising it.

Likewise, the fifth additional provision of Law 20/1990 establishes that shall not be considered as increases in assets, those obtained as a consequence of the assignment of assets and rights of the Agricultural Chambers that have taken place as from 1 January 1994.

Finally, Article 22.3 of Law 20/1990 establishes that shall not be considered as a reduction of assets, reductions in share capital due to shareholder cancellations.