Short Answer

The accounts of subsidiaries or trusts of a society are consolidated or reported as per the provisions of the Gujarat Cooperative Societies Act, 1961 and the Gujarat Cooperative Societies Rules, 1965.

Detailed Explanation

Rule 156 of the Gujarat Cooperative Societies Rules, 1965 states that every society shall maintain proper accounts of all its subsidiaries or trusts. This means that each subsidiary or trust associated with a society must maintain separate and distinct accounts to ensure transparency and accountability. These accounts should be consolidated with the main society's accounts to present a comprehensive financial picture.

Furthermore, Section 76 of the Gujarat Cooperative Societies Act, 1961 empowers the Registrar to direct a society to produce its books of account, including those of its subsidiaries or trusts, for inspection and audit. This provision ensures that the financial transactions of all entities related to the society are properly recorded and reported.

In practice, when preparing financial statements, the society must include the financial information of its subsidiaries or trusts in the consolidated accounts. This consolidation process involves combining the financial data of all entities under the society's control to present a unified financial position, performance, and cash flows.

For example, if a cooperative housing society has a subsidiary that manages its parking facilities, the subsidiary's financial statements detailing revenue, expenses, and assets must be consolidated with the main society's accounts. This consolidation provides a holistic view of the society's overall financial health and operations.

In another scenario, if a cooperative credit society has a trust fund for welfare activities, the trust's accounts showing donations received and expenditures incurred should be consolidated with the society's financial statements. This consolidation ensures that all financial activities related to the society are accurately reflected in its reports.

Overall, the consolidation of accounts of subsidiaries or trusts with the main society's accounts is essential for transparency, accountability, and compliance with regulatory requirements.

References

• Rule 156 of the Gujarat Cooperative Societies Rules, 1965: Official PDF

• Section 76 of the Gujarat Cooperative Societies Act, 1961: Official PDF