Ericka Costa , Lee D. Parker , Michele Andreaus (ed.) Accountability and Social Accounting for Social and Non-Profit Organizations This study addresses the effects of the accounting reclassification of members shares in Spanish cooperatives motivated by the new accounting standards. The study reports the results of semi-structured in-depth interviews with experts. The accounting reclassification from equity to liability of members shares has effects even if there is no actual material change in terms of the members shares. Thus cooperatives are incentivised to modify their statutes in order to retain their equity accounting classification, even when this modification is not desired. The evidence is obtained from qualitative methods and a generalization using quantitative methods would be interesting if data were available. The present study provides a starting-point for further research into the use of lending technologies in the financing of cooperatives and the use of accounting information in granting bank finance to cooperatives, thereby contributing to the study of the use of accounting information by capital providers. There is very little literature on the effects of equity-liability accounting reclassification motivated by a change in an accounting standard. The study takes advantage of the recent accounting standard change in Spain which may be considered as a natural experiment and contributes to the literature on the effects of accounting standards. This work is part of the research Project Información contable, financiaciación, resistencia a la crisis y cooperativas (Accounting information,finance, resilience to the crisis and cooperatives entities), financed by theresearch and development support Programme (PAID-06-12) of the Universitat Politècnica de València. Polo Garrido, F. (2014). The Effects of the Accounting Reclassification of Members Shares in Cooperatives: An Approach. En Advances in Public Interest Accounting, Volume 17. Emerald. 129-149. doi:10.1108/S1041-706020140000017005 Arksey, H., & Knight, P. (1999). Interviewing for Social Scientists. doi:10.4135/9781849209335 Beatty, A., Ramesh, K., & Weber, J. (2002). The importance of accounting changes in debt contracts: the cost of flexibility in covenant calculations. Journal of Accounting and Economics, 33(2), 205-227. doi:10.1016/s0165-4101(02)00046-0 Berger, A. N., & Udell, G. F. (2006). A more complete conceptual framework for SME finance. Journal of Banking & Finance, 30(11), 2945-2966. doi:10.1016/j.jbankfin.2006.05.008 Boot, A. W. A. (2000). Relationship Banking: What Do We Know? Journal of Financial Intermediation, 9(1), 7-25. doi:10.1006/jfin.2000.0282 Brav, A., Graham, J. R., Harvey, C. R., & Michaely, R. (2005). Payout policy in the 21st century. Journal of Financial Economics, 77(3), 483-527. doi:10.1016/j.jfineco.2004.07.004 Gray, R., Walters, D., Bebbington, J., & Thompson, I. (1995). The Greening of Enterprise: An Exploration of the (NON) Role of Environmental Accounting and Environmental Accountants in Organizational Change. Critical Perspectives on Accounting, 6(3), 211-239. doi:10.1006/cpac.1995.1021 Haller, A., Nobes, C., Cairns, D., Hjelström, A., Moya, S., Page, M., & Walton, P. (2012). The Effects of Accounting Standards – A Comment. Accounting in Europe, 9(2), 113-125. doi:10.1080/17449480.2012.720870 Hjelström, A., & Schuster, W. (2011). Standards, Management Incentives and Accounting Practice – Lessons from the IFRS Transition in Sweden. Accounting in Europe, 8(1), 69-88. doi:10.1080/17449480.2011.574400 Jones, B. L. (1986). A Model of Cooperative Finance: Comment. American Journal of Agricultural Economics, 68(1), 170. doi:10.2307/1241664 Larrinaga‐González, C., Carrasco‐Fenech, F., Caro‐González, F. J., Correa‐Ruíz, C., & María Páez‐Sandubete, J. (2001). The role of environmental accounting in organizational change ‐An exploration of Spanish companies. Accounting, Auditing & Accountability Journal, 14(2), 213-239. doi:10.1108/09513570110389323 Lillis, A. M. (1999). A framework for the analysis of interview data from multiple field research sites. Accounting and Finance, 39(1), 79-105. doi:10.1111/1467-629x.00018 López-Espinosa, G., Maddocks, J., & Polo-Garrido, F. (2009). Equity-Liabilities Distinction: The case for Co-operatives. Journal of International Financial Management & Accounting, 20(3), 274-306. doi:10.1111/j.1467-646x.2009.01033.x López-Espinosa, G., Maddocks, J., & Polo-Garrido, F. (2012). Co-operatives and the Equity-Liabilities Puzzle: Concerns for Accounting Standard-Setters. Accounting Horizons, 26(4), 767-787. doi:10.2308/acch-50208 PETERSEN, M. A., & RAJAN, R. G. (1994). The Benefits of Lending Relationships: Evidence from Small Business Data. The Journal of Finance, 49(1), 3-37. doi:10.1111/j.1540-6261.1994.tb04418.x Scott, T. W., Wiedman, C. I., & Wier, H. A. (2011). Transaction Structuring and Canadian Convertible Debt*. Contemporary Accounting Research, 28(3), 1046-1071. doi:10.1111/j.1911-3846.2011.01085.x Trombetta, M., Wagenhofer, A., & Wysocki, P. (2012). The Usefulness of Academic Research in Understanding the Effects of Accounting Standards. Accounting in Europe, 9(2), 127-146. doi:10.1080/17449480.2012.720871 VanSickle, J. J., & Ladd, G. W. (1983). A Model of Cooperative Finance. American Journal of Agricultural Economics, 65(2), 273. doi:10.2307/1240873 Wengraf, T. (2001). Qualitative Research Interviewing. doi:10.4135/9781849209717 Tiu Wright, L. (1996). Exploring the in‐depth interview as a qualitative research technique with American and Japanese firms. Marketing Intelligence & Planning, 14(6), 59-64. doi:10.1108/02634509610182913

Arquero-Montaño, J. L., Donoso-Anes, J. A., Jiménez-Cardoso, S. M., & González González, J. M. (2009). Análisis Exploratorio Del Perfil Demandado Para Administración Y Dirección De Empresas: Implicaciones Para El Área Contable. Revista de Contabilidad, 12(2), 181-213. doi:10.1016/s1138-4891(09)70006-8

Arquero-Montaño, J.L., Donoso-Anes, J.A., Jiménez-Cardoso, S. M., González González, J. M. (2009). Exploratory Analysis of Demanted Profile for Administration and Business Management: Implications for the Accounting Area. Accountancy journal, 12 (2), 181-213. doi:10.1016/s1138-4891 (09) 70006-8

The Effects of the Accounting Reclassification of Members Shares in Cooperatives: An Approach

Abstract