1. Is it necessary to merge the statements of the head office and branches?
Although the branch company and the head office are independent economic entities, because they belong to the same company, the operation and profitability of their enterprises still need to be combined for corresponding accounting. We call the work of summarizing the financial statements of branches and head offices "report consolidation". When summarizing the financial information of the branch company and the financial information of the head office, we must first prepare a working paper on the merger of the branch company. The purpose of compiling the working papers on the merger of branches is to provide a basis for the accounting merger between branches and head offices.
The company's financial statements mainly include balance sheet, income statement, cash flow statement, statement of changes in owner's equity and attachments of various forms. The company uses various financial statements to show the company's operation in an accounting period, such as the company's profit in an accounting period, the composition of the company's assets, and the solvency in a certain period. , are the company's investors, shareholders, investors are very concerned.
After the working papers are compiled, summarize, sum and calculate all kinds of amounts in the balance sheets, income statements, cash flow statements and owner's equity change statements of the branches and the head office to obtain the consolidated amount. Pay attention to the offset treatment of corresponding accounting subjects when preparing the consolidated statements of branches and head offices, and prepare corresponding accounting entries for offset treatment. Finally, the information such as assets, liabilities, owners' equity, accounts receivable and accounts payable will be summarized and filled out, and the financial statements of branches and head offices will be merged.
Two, how to deal with the consolidated tax returns of branches and head offices?
At the same time, the tax authorities should examine whether the enterprises applying for consolidated declaration are non-independent accounting branches, whether the enterprises applying for consolidated declaration exist in the list of branches of enterprises applying for consolidated declaration, and whether the accounting methods, accounting transactions and account books of their branches and head offices meet the requirements of consolidated declaration of audit collection.
It is worth mentioning that there is another situation: simply speaking, the consolidated tax payment for cross-regional operations means that the corporate income tax of the whole enterprise is calculated by the head office and each branch office in a unified way, managed at different levels, paid in advance on the spot, and summarized and liquidated.
3. Can the branches of the two companies be merged?
Of course. From a legal point of view, a branch does not have independent subject qualification, but is only a branch of the head office (its property is actually owned by the head office), so it does not belong to the problem of company merger (at least two companies need to merge). With regard to "branch merger", the branch may be cancelled first, and the head office shall make a resolution to cancel the branch first, and the head office shall apply to the company registration authority of the branch for cancellation of registration within 30 days from the date of making the resolution. To apply for cancellation of registration, an application for cancellation of registration signed by the legal representative of the head office and the business license of the branch office shall be submitted.
After the cancellation of the branch, apply for registration of change of residence. Where a company changes its domicile, it shall apply for registration of change before moving into the new domicile, and submit the certificate of use of the new domicile. Therefore, the contract of the branch company is relatively simple in law.
The statements of the head office and branches need to be merged, so the tax returns of the two should also be merged. The merger of the two branches was also mentioned above. First of all, the branch company should be cancelled, then the head office will make a cancellation resolution and apply for cancellation to the company registration authority, and finally apply for registration of change of company residence.