Intercompany Consolidation-UK and Russian Offices | AccountingWEB

Intercompany Consolidation-UK and Russian Offices

Hello All, first post, so excuse me if it's relatively silly!!

We are a UK Company and have a Branch Office in Moscow.  Our Branch Office in Moscow can only work with Clients who are based in Russia, so any Clients outside Russia have to be Invoiced via UK Office, then we carry out an `Act of Transfer' between UK and Moscow Office for this work.  Out Accountants in Russia are then treating this as a `Sale' and I treat the Russian time as a `Sub Contractor' in my Cost of Sales.

I am now trying to produce some Consolidated accounts, and something is nagging at me about `Double Accounting'.  Am I right in thinking that the Sales for UK will be us Invoicing `Client X' for the Russia work, and the Russian Branch Office will show a Sale for Invoicing us for that work........I am not showing this twice then am I, as it is basically the same premise as any Sub Consultant working for us??

now I've written it down it seems easy!!!  but any pointers would be welcome



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I am confused, too

Euan MacLennan |
Euan MacLennan's picture

Thanks for the reply, as you

maddieseren |