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Practical Manual for Companies 2020.

Equity increases and decreases

In box [E5] of non-cooperative results the variations in the value of the cooperative's assets that become apparent on the occasion of any change in their composition will be recorded with their sign.

For these purposes, article 22.2 of Law 20/1990 establishes that the following will not be considered increases in assets:

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

  2. The compensation by the partners for the social losses that have been attributed to them.

  3. The results of the regularization of the assets when so provided by the special Law that authorizes it.

Likewise, the Fifth Additional Provision of Law 20/1990 establishes that increases in assets will not be considered those obtained as a result of the asset attribution of assets and rights of the Agricultural Chambers that have taken place after January 1, 1994.

Finally, article 22.3 of Law 20/1990 establishes that reductions in share capital due to the departure of partners will not be considered as a decrease in assets.