@revant_one I think this is an awesome addition to ERPNext. I have a couple of ideas.
Consider adding a Doctype that portrays “stock structure” of sorts.
Let’s say that Sister company has issued 1010 shares of stock, divided like this
333 Type A (common stock, voting rights: yes)
333 Type B (common stock, voting rights: yes)
334 Type C (common stock, voting rights: yes)
10 Type D (Preferred stock, voting rights: no)
Mother company (in ERPNext) owns 333 of share type A: “Sister Company Common stock type A”
The idea is to define for each company added to ERPNext, the type of stock issued, amount of shared of each type, and whether voting rights are given. The total amount of shares issued, being a sum of the three different types of stock mentioned above. You then set a Journal Entry that is linked to the purchase or booking of the 333 Type A stock for Sister Company. This automatically should update the “stake” to 33%. Now, if you book another journal entry of 333 shares of Type B stock, the stake should update automatically to 66%, which should also automatically update company to a “daughter” company.
There should also be a clear specific definition of which percentage stake makes sister or daughter company, a setting per country.
Clearly, the consolidation of statements should reflect the rules depending if it is an daughter or sister company.
Perhaps in the near future (2 months) I might be able to sponsor this feature…
@revant_one The work you are doing is great.I am a CA and not a developer and willing to contribute my accounting knowledge in any way you want .
This work if finished will make erpnext greater than some very costly ERPs
@revant_one@tropicalrambler i hope this great work will not be limited to statement of financial position.Other reports like Statement of Comprehensive Income ,Statement of Cashflow, and Change in Equity should be considered for the project to be holistic. IFRS is a GAAP many nations have adopted and many more are joining.Nations that has not joined this GAAP can still modify the app revant is developing to meet their reporting need.