The practice of combining the statements of the head office and branches: the statements of the two companies are added to offset the internal current balance and internal transactions. On the basis of adding the total amount of each item in the individual financial statements of the head office and branches, the combined amount of each asset item, liability item, owner's equity item, income item and expense item in the consolidated financial statements is calculated respectively.
Legal objectivity:
Article 14 of the Company Law A company may set up branches. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.