Resolution:
This transaction is a “split-off”. It differs from a spinoff in that those receiving Mead Johnson shares will be reducing the number of shares they hold in Bristol Myers. In addition, the offer to exchange was over-subscribed. So only a portion of BMY shares offered to be exchanged were actually exchanged. The ratio was about 54% of BMY shares offered for exchange were actually exchanged.
Entering this transaction in Club Accounting can be accomplished by entering two transactions. The first is a reverse split of BMY shares. The second is a spinoff of MJN from BMY. For the purpose of this transaction, we use an example case where the club had 200 shares of BMY before the transaction, and ended up with 92 shares afterwords.
First, check to see if any transaction you have entered for this match the solution below. If not, delete these transactions..
The first transaction to enter will be a Stock Split. For information on how to enter a stock split, please see our web site at:
Following is the information to use when entering the stock split
- Date: 12/22/2009
- Company or Ticker: Bristol-Myers Squibb / BMY
- Split Ratio: In the Split Ratio fields enter (the # of shares of BMY after exchange) for (the # of shares after exchange).
For example, if you had 200 shares of BMY before the exchange and 92 after the exchange you would enter a split ratio of “92 for 200”.
You can check the field Shares After Split , that the correct number of after-exchange shares are left. The number in this field should correspond to your after-exchange BMY shares held.
The next transaction to enter will be a Spinoff. For information on how to enter a spinoff, please see our web site at:
http://www.iclub.com/support/kb/default.asp?page=normal_spinoff
Following is the information to use when entering the spinoff:
Date: 12/23/2009
- Cash Account: Whichever cash account the cash in lieu of fractional shares was deposited to
- Parent Security or Ticker: Bristol-Myers Squibb / BMY
- Remaining Basis: This requires a bit of calculation, as follows: