Difference between revisions of "Residual Assets"

Revision as of 13:50, 8 February 2014

Residual Assets are the assets that remain in an organisation after all creditors have been paid. In a FairShares Company / Co-operative, residual assets are distributed in a way that is defined in Clause 54.

Residual assets are calculated as follows:

[shareholder funds] + [accumulated profit and loss account] + [assets – liabilities]

Worked Example – Calculating Residual Assets

Shareholder Funds £345k Profit and Loss Account £200k Assets - Liabilities £100k

Residual Assets

£345k + £200k + £100k = £645k

Residual Assets may be distributed partly as a Community Dividend upon dissolution if the organisation has received grants from Community and Public Funding bodies.

Return to the FairShares Glossary.