Note
BGL does 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.
Overview
Think Childcare Limited issued a fully franked special dividend of $0.09858225 per share on 23 Dec 2019.
- The Dividends won’t be paid to shareholders in cash, but will be applied to purchase Think Childcare Development Limited (TND) on shareholders’ behalf.
- The security of TNK and TND will be stapled together and traded under the unchanged ASX Code TNK.
Please check ASX Announcements for further details.
Instructions
This corporate action needs to be manually processed from the transaction list. Two options are provided below. In this example, the fund holds 1,000 units of TNK as of the record date.
Option 1. Treat the securities as 2 separate CGT assets
1. Users need to first create an investment account for TND. Please also check how to add an account
2. From the Transaction List, users can record the below journals as of 23 Dec 2019.
| Account Code and Name | Units | Debit | Credit |
| 78001/TND.AX Think Childcare Development Limited | 1,000 | $0.09858225*1,000 | |
| 23900/TNK.AX Dividends Received | NA | $98.58 |
Leave the Dividend Details panel as pre-filled.
Option 2. Treat the securities under the same TNK.AX account
1. From the Transaction List, users can record the below journals as of 23 Dec 2019.
| Account Code and Name | Units | Debit | Credit |
| 77600/TNK.AX Think Childcare Limited | 1,000 | $0.09858225*1,000 | |
| 23900/TNK.AX | NA | $98.58 |
2. Navigate to Corporate Actions screen under Investments
3. Select New Corporate Action
4. From the New Corporate Action screen, select from the drop-down list for the below fields.
| Select Security to Process | TNK.AX |
| Select Corporate Action | Share Consolidation |
| Select the account required for the corporate action | 77600/TNK.AX (This field should be populated) |
5. Input Corporate Action Details
| Ex/Balance Date | 23/12/2019 |
| Corporate Action Date | 23/12/2019 |
| Units After Share Consolidation | 1,000 |
6. Select Process Corporate Action
