New report: Accounting & reporting of co-operatives in UK

This report explores the accounting and reporting practices and challenges faced by co-operatives in the UK, enterprises operating under principles of democratic control and mutual benefit. These defining principles set co-operatives apart from both investor-owned business and traditional for-profit or non-profit organisations. Accounting standards, such as the International Financial Reporting Standards (IFRS) and UK Generally Accepted Accounting Practice (GAAP), are tailored to investor-owned business and business driven by the profit motive, focusing primarily on increasing financial returns and shareholder value. As a result, these standards fail to adequately address the accountability needs of co-operatives, creating challenges for co-operatives in aligning their accounting practices and reporting with their purpose, core values, and governance structures. 

Drawing on interviews with co-operative practitioners, accountants, researchers, and regulators, this report provides insights into current practices, the obstacles co-operatives face, and potential pathways for improvement. Its primary objectives are to explore the accounting landscape for UK co-operatives, highlight key challenges, and offer recommendations to better align accounting practices and frameworks with the core principles and values of co-operatives.