CONTENTS
| Page | Para. | |
| NOTICE | 4 | |
| PREFACE | 5 | |
| GENERAL SUMMARY | 7 | 1–22 |
| I. ALLOCATION METHODS: | ||
| Separate Accounting and Fractional Apportionment | 14 | 2–12 |
| Nature of Separate Accounting | 17 | 13–17 |
| II. BRANCH ACCOUNTING | 19 | 18 |
| General Accounting Requirements | 19 | 19–38 |
| Foreign Exchange | 23 | 39–41 |
| III. SEPARATE DETERMINATION OF SELLING PROFIT AND MANUFACTURING PROFIT | 25 | 42–47 |
| IV. THE COMMISSION METHOD | 27 | 48–56 |
| V. HE INDEPENDENT DEALER PRICE METHOD | 30 | 57–61 |
| Unrealised Profits in Branch Inventories | 31 | 62–67 |
| Inter-branch Expense Charges | 33 | 68–70 |
| General Overhead Expense | 34 | 71–73 |
| VI. THE CONSTRUCTED FACTORY PRICE METHOD: | ||
| The Cost Approach | 36 | 74–77 |
| Cost-plus Basis for constructing a Factory Price | 37 | 78–87 |
| Constructing a “Fair Market Price” | 40 | 88–96 |
| VII. APPORTIONMENT OF JOINT PROFIT ON MANUFACTURE AND SALE | 43 | 97–106 |
| VIII. ALLOCATION METHODS FOR VARIOUS ESTABLISHMENTS | 47 | 107 |
| Manufacturing Establishments | 47 | 108–109 |
| Dumping and Differential Gains | 48 | 110–115 |
| Buying Establishments | 49 | 116–126 |
| Processing Establishments | 52 | 127–131 |
| Assembly Plants | 53 | 132–133 |
| IX. CAPITALISED BASIS OF BRANCH ACCOUNTING | 55 | 134 |
| Treatment of Branch as a Separate Entity | 55 | 135–137 |
| Apportionment of Interest on General Indebtedness | 56 | 138–144 |
| Tax Aspects in Intra-company Interest | 59 | 145–150 |
| X. BRANCH TAX RETURNS AND SUPPORTING SCHEDULES | 61 | 151–158 |
| Appendices: | ||
| A. Methods of Accounting for Exchange Operations | 65 | 1–14 |
| B. Illustrative Entries for Consignments to Branches | 70 | 1–19 |
| C. Analysis of Production and Distribution Costs | 74 | 1–22 |
S. d. N. 1.705 (F.) 1.725 (A.) 9/33 Imp. Vitte, Lyon.