Note
BGL do not provide accounting or taxation advice. The following is designed to act as a guide for Simple Fund 360 users. It is not designed to be accounting or tax advice and should not be taken as a strict guideline. Other methods that are more suitable may be used instead of these steps.
Before Proceeding
- Ensure the Wesfarmers Capital Return, Consolidation and Reclassification 2013 has been processed.
- All transactions related to Wesfarmers prior to the corporate action have been correctly entered in SF360. You can check your investment reports to see if the current holdings are correct.
Details
On 20 November 2014, Wesfarmers shareholders approved of the capital management initiative. This involved a distribution of $1.00 to shareholders per share and a share consolidation.
Source:2014 Capital management initiative - A quick guide (PDF)
Refer to the following for further information:
Scenario:
The fund held 1000 shares as at the record date.
Return of Capital = $750
Fully Franked Dividend = $250
Units on hand after consolidation: 983 (1000 x 0.9827 - rounded to the next whole number of shares - See Point 25 in the ATO Class Ruling 2014/76).
This will be recorded using the following steps:
Step 1 - Return of Capital and Receipt of the Fully Franked Dividend
Step 1 - Return of Capital and Dividend Received
Record a return of capital of $0.75 per share.
In this scenario: $0.75 x 1000 = $750
Go to Accounting | Transaction List and select New Transaction | Bank Statement.
Enter the details of the return of capital.
You have to input "0" in the Units field and should not leave the field blank. Otherwise, this will be treated as a manual revaluation by SF360.
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Select More and check the information under the Return of Capital Details panel.
Select Add line and enter the details of the dividend received.
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Select More and the Dividend Details panel will display.
Ensure the details are correct.
Select Post.
Step 2 - Consolidation
One share was consolidated into 0.9827share.
In this scenario, after the consolidation, the fund held 983 shares (1000 x 0.9827 - rounded to the next whole number of shares - See Point 25 in the ATO Class Ruling 2014/76).
From the Main Toolbar, select Investments | Corporate actions.
This will display the Corporate Actions Dashboard.
Locate the Share Consolidation for WES.AX and from the Action column, select Process.
Selecting Process will pre-fill the corporate action data for processing.
Review and input the remaining details of the consolidation.
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Select Process Corporate Action.