Legal analysis: accounting treatment method of branches: 1. The branch company does not have the status of an independent legal person, and its external creditor's rights and debts are all borne by the head office. Generally, branches operate independently, and the head office shall conduct liquidation when canceling, and receive its assets, creditor's rights and outstanding debts. Form liquidation statements through liquidation; 2, the head office in the form of consolidated statements, with its net assets or losses and head office book allocation offset and confirm the loss; 3. When the loss is confirmed, the income tax of the head office and branches should be contacted more; 4. Finally, cancel all kinds of certificates and certificates of branches.
Legal basis: Article 179th of the Company Law of People's Republic of China (PRC). Where a company is merged or divided and its registered items change, it shall register the change with the company registration authority according to law. If the company is dissolved, it shall go through the cancellation of registration according to law; Where a new company is established, it shall be registered in accordance with the law. Where a company increases or decreases its registered capital, it shall register the change with the company registration authority according to law.