The relationship between parent company and subsidiary company is investment and control, that is, if Company A establishes Company B through investment (sole proprietorship or investment with other units or individuals) and can control Company B, Company A is the parent company of Company B, and Company B is the subsidiary company of Company A;
The relationship between the head office and the branch office is that the branch office is a branch office of the head office: for example, the above-mentioned company A has set up a branch office in a certain area, so company C can operate in the name of company A, but company C has no legal personality and independent property (all its property is the property of company A).
2. The parent company and the subsidiary company are two different legal persons, and the subsidiary company has independent legal personality, independently undertakes foreign economic responsibilities and independently prepares financial statements. On the books of the parent company, the investment in subsidiaries is reflected in the long-term equity investment by the cost method; When preparing consolidated statements, it is generally necessary to include subsidiaries in the scope of consolidation, unless there are special circumstances;
The income and cost incurred by the branch companies are on the books of the head office, which does not belong to the foreign investment of the head office (equivalent to moving a department within the company outside). In order to facilitate control and management, detailed accounts can be set up separately under the cost of the head office to account for the expenses incurred by the branches. For example, the expenses incurred by the head office under sales expenses can be directly reflected in the secondary subjects (employee compensation, depreciation expenses, etc.). ), and at the same time add a secondary account branch C, with three accounts (employee compensation, depreciation expenses, etc.). ), so as to facilitate the control and assessment of the branch. Of course, if you don't need to collect it separately, you don't have to set up this secondary subject.
I hope it will help you a little, and I wish you success in your work!