Foreign branch account
Answers
Answer:
A foreign branch office is a representation of a company in a foreign country that usually can do commercial transaction on its own. Depending on the law of the country, the branch office can or should be a limited company, where the shares are held by the parent company abroad.
Answer:
Foreign Branch: Entries at Head Office
The distinctive feature of a foreign branch is that information received from the foreign branch will be in foreign currency and that it must be converted into the currency of the country of the head office before it can be used for accounting purposes. For example, if an Indian company has a branch in Nairobi, the Branch Trial Balance will be in Shillings. The trial balance must be converted into rupees before it can be incorporated. Before the question of incorporation is taken up, it will be better if it is considered how transactions with branches will be treated .