                                 CODE OF VIRGINIA

INTERNAL CAPITAL ACCOUNTING (§ 13.1-355)

A. The entire net book value of a worker cooperative shall be reflected in
internal capital accounts, one for each member, and a collective reserve
account.

B. A worker cooperative shall credit the paid-in membership fee and additional
paid-in capital of a member to the member&#8217;s internal capital account and
shall also record the apportionment of retained net earnings or net losses to
the members in accordance with patronage by appropriately crediting or debiting
the internal capital accounts of members. The collective reserve account in an
internal capital account cooperative shall reflect any paid-in capital, net
losses, and retained net earnings not allocated to individual members.

C. The balances in all the internal capital accounts and collective reserve
account, if any, shall be adjusted at the end of each accounting period so that
the sum of the balances is equal to the net book value of the worker
cooperative.

HISTORY: 2020, c. 673.