Consolidation of branches

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Lasa1
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Joined: 07 Oct 2020, 11:29

Consolidation of branches

Post by Lasa1 »

Hello
Can someone guide me to basic examples to learn how to consolidated the branches in the "mother branch"?
Thanks
Regards
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Marek Muc
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Re: Consolidation of branches

Post by Marek Muc »

I'm not sure what you mean, please elaborate
JRSB
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Re: Consolidation of branches

Post by JRSB »

same principles as consolidating different entities. I assume you mean branch in the UK legal sense which is effectively divisions of the same legal entity, ie you might operate separate P&Ls but legally all the same company. So same as 'normal' consolidations , remove intercompany trading etc, see knowledge base
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Marek Muc
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Re: Consolidation of branches

Post by Marek Muc »

Interesting, are there any befits to maintaining separate ledgers for divisions within the same company? All the management information can be derived from other dimensions after all (cost centres etc)
JRSB
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Re: Consolidation of branches

Post by JRSB »

In some cases only the activities of a branch are taxable so you need separate ledgers to isolate tax sensitive items, etc
I have seen this for example in France where the ledgers are mandated by law (I believe) even though it was just a branch of a UK company. Then there was a consolidation (albeit all the same legal entity).
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Marek Muc
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Re: Consolidation of branches

Post by Marek Muc »

I see, then it's similar to consolidation as you wrote
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