Accounting for a Russian Subsidiary or Branch | Accountant & Co.

A Russian subsidiary or branch is usually part of a much larger reporting system. Local finance has to close correctly, while group finance expects consistent account mapping, intercompany balances, reporting deadlines and explanations of material movements.

Accountant & Co. helps connect the local accounting process with the requirements of the parent company.

Core areas of support

• monthly and annual close coordination;
• local bookkeeping and reporting workflow;
• chart-of-accounts mapping to the group structure;
• intercompany reconciliations;
• accrual, prepayment and fixed-asset schedules;
• foreign-currency and balance reconciliations;
• headquarters reporting packages;
• audit and due-diligence support.

Subsidiary reporting

For a Russian legal entity owned by an international group, the practical challenge is often not the existence of two reporting frameworks, but the bridge between them. We can organize a repeatable process in which local books remain the source record and reporting adjustments are documented separately for consolidation or management reporting.

This makes it easier to answer three basic questions at every close: what is in the local ledger, what changed for group reporting, and why.

Branch and other forms of presence

A branch, representative office or other form of foreign-company presence may have a different registration, accounting and tax profile from a locally incorporated subsidiary. The Federal Tax Service publishes specific procedures for the registration of foreign organisations. The appropriate workflow therefore starts with the actual legal and operating structure.

Intercompany control

Cross-border groups frequently accumulate differences in intercompany balances because invoices, FX treatment, timing and local adjustments are recorded differently by each side. A disciplined close should include:

• counterparty-by-counterparty reconciliation;
• invoice and payment matching;
• identification of timing differences;
• documentation of unresolved items;
• confirmation of the final group reporting balance.

Transition from another provider

If accounting is being transferred from an internal team or another provider, we can structure the handover around opening balances, tax registers, contracts, primary documents, reporting history, outstanding reconciliations and the current close calendar.

Related services

See Accounting for Foreign Companies in Russia, RAS and IFRS Reporting and Cross-Border Finance.

Contact Accountant & Co. to discuss the entity structure and reporting requirements.

The exact accounting and tax treatment depends on the legal form, activities, transactions and applicable rules for the relevant period.