Analysis of the activities of branches and representative offices allocated to an independent balance
Organizations taking into account the specifics of their production and technological and economic relations and the organizational and economic structure of management may have branches, representative offices and other separate structural units. In order to collect, summarize and analyze information on the financial and property situation of the branches, as well as the results of their financial and economic activities, primary accounting information is usually formed in the accounting department of the branch, which maintains accounting records and prepares financial statements, and then transfers it to centralized accounting head organization for the formation of consolidated reporting. In NBU 4/99 & quot; Accounting statements of the organization & quot; it is determined that the organization that has branches, including those allocated to an independent balance sheet, should include indicators of their activity in the reporting, therefore, the regulation of accounting and reporting of branches is within the competence of the organization itself.
The goals, tasks and features of accounting and reporting of branches determine the specifics of analyzing their financial performance.
When forming the balance sheet of a branch:
• intangible assets acquired by the branch and used on its territory participate;
• there are no long-term financial investments in the authorized capital of other organizations;
• Investments and loans to other organizations must be confirmed by the regulatory authority vested in the branch by the parent organization;
• the branch's receivables can not include the debts of the participants in contributions to the authorized capital, subsidiaries and affiliates;
• The branch's accounts payable can not include debts to subsidiaries and dependent companies;
• Article & quot; Registered capital & quot; does not contain data;
• there can be no share premium in the composition of additional capital;
• there may be amounts of the organization's debt due to dividends due to payment;
• Undistributed profit (uncovered loss) is reflected in the amount actually received, while in reviewing the results of the year the organization can be redistributed by these amounts, which should be taken into account in the reformation of the balance.
For mutual settlements with the parent organization, an account 79 is created, "Intra-company calculations" with sub-accounts: 79-1 - settlements for the allocated property, 79-2 - settlements for current operations. In the case of a debit balance on account 79, the receivables of the parent organization are shown in the balance sheet of the branch, in the case of credit balances, the branch accounts payable to the parent organization. At the same time, in the consolidated balance sheet, information on account 79 is not reflected, and the account should be closed. For such debts, there should not be a provision for doubtful debts and there is no statute of limitations.
In the branch financial results report , as part of management expenses, the branches can show the expenses for general management activities transferred by the parent organization. As part of other income and expenses, there can be no creditor and accounts receivable on account 79.
Explanations to the accounts of the branch contain decoding of expenses related to intra-business turnover.
An organization that has branches allocated to an independent balance sheet includes performance indicators of branches, producing an appropriate offset of intraeconomic turnover.
Explanatory note of branches , in addition to the generally established indicators, reflects detailed information on all types of intra-business calculations.
Taking into account the specifics of the branches' information, it is analyzed for more efficient management using all the methods and methods of financial analysis recommended by IFRS. Particular attention is paid to the performance indicators of the branch as an independent object of accounting and management within a single organization. Analysis of the activities of the branch is conducted in the following areas:
• Cost structure of the branch,
• intra-farm calculations,
• property and sources of financing,
• financial stability and solvency,
• business activity, resource performance,
• financial results and profitability of activities.
The comparison of the calculated coefficients and relative indicators is carried out not only in the dynamics for several periods of activity, but also in comparison with similar indicators of other branches and average data for the organization as a whole. It is desirable that a unified methodology for analyzing activities for all branches is developed.
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