This article covers a financial evaluation of 31 representative agricultural co-operatives. Although the ratio of the members' interest to the total assets remained reasonably constant during the study period, the share capital and reserves decreased relatively to the total assets. According to...

The application of a gearing adjustment in inflation accounting has always resulted in the problem of determining a financing sequence. A decision has to be taken whether certain categories of assets are financed with equity and/or loan capital. Financial theory of the last few decades quite...

The objective with this article is to analyse and compare the method of calculating the gearing adjustment as applied in the United Kingdom (SSAP 16), the Netherlands (Philips 1981 version) and South Africa (Guideline AC 201). It could be read together with Van Hoepen, Lambrechts and Mostert...

An optimal income appropriation policy for a co-operativeThe income (after interest payable, except on deferred bonuses and before taxation) can be appropriated in three different ways (different combinations are possible), i.e. the payment of cash bonuses, the declaration of deferred bonuses,...

Converting co-operatives to companies: A consideration The change in the Income Tax Act in 1977 resulted in co-operatives becoming tax liable from 1 April 1977. In addition, the Co-operatives Act of 1981 resulted in additional restrictions for co-operatives. Consequently certain important...

In this article a framework is developed to test whether depreciation based on replacement cost meets cash flow requirements. It also indicates both the extent to which depreciation based on replacement cost can be linked to depreciation based on historical cost and the factors which should be...