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What is Understanding Branches and Parent Companies about?

This document defines the concepts of parent company, branch, and subsidiary. It explains that a branch does not have its own legal personality and is economically dependent on the parent company. It also describes that a branch can enter into contracts related to the activities of the parent company, although it enjoys some administrative autonomy. Finally, it states that the accounting of a branch must be designed to provide information to management about its performance.

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