Members' shares in a cooperative (IFRIC 2)

Learning objectives

• Explain when members' shares in co-operative entities are equity (unconditional right to refuse redemption or unconditional prohibition).L2
• Analyse a prohibition against redemption to determine whether it is unconditional or subject to conditions.L3

Normative references

The syntheses of the reference register are written in French: only the paragraph reference is shown here.

1 question

• The Brande co-operative issues members' shares that each member may ask to have redeemed. Its statutes prohibit redemption when its liquidity ratio is below 8%; outside that situation, redemptions are due (case facts). How does Brande classify these shares?L3