Sony spun off Sony Financial Group as an independent company. The structure of the spinoff was the distribution of Sony Financial Group shares as a taxable dividend. The default distribution for Sony shareholders is one share of SFGYY for every share of SONY. Sony implemented a 5 for 1 stock split several days after the spinoff. The 1:1 SFGYY to SONY spinoff ratio is based on SONY shares before the stock split.

Resolution:

This action will need at least two entries in the accounting software. If the total shares of SFGYY  you were entitled to receive included a fractional portion, a third entry (a sell transaction) will be needed.

The Fair Market Value (FMV) of the distribution and the cost basis of the SFGYY shares received possibly will not match your broker records. Tax law and IRS regulations do not specify how FMV is determined. The FMV of SFGYY  shares in these instructions use the opening price of SFGYY on October 6, 2025. This price was 4.75.  This price was chosen for two reasons, first because according to Sony news releases, the distribution was to be completed on October 6, 2025. Also, using this price minimizes the amount of the taxable dividend since the closing price on October 6, 2025 was 5.36 

The Dividend Entry

Go to Accounting > Securities > Cash Distribution depending on the version of the software being used. Here is the information you need to complete the dividend entry.

• Symbol: SONY (Sony)
• Payout date: 10/6/2025
• Ex-Dividend date:  9/29/2025 
• Type : Dividend
• Amount: [4.75 x 1.0  x  (# of SONY shares owned before the stock split) ]
  • # of SFGYY  shares received = 1.0 x (# of SONY shares owned)
  • 4.75 = opening price of SFGYY  shares on the first regular trading day, 10/6/2025
  • For example, if you owned 100 shares of SONY your amount would be 4.75 x 1.0 x 100 = 475.00

Save the transaction and the dividend has been entered.

The Buy Entry

Go to Transactions > Buy  or Accounting > Securities > Buy depending on the version of the software being used.

Here is the information you need to complete the buy.

• Date: 10/8/2025
• Select Security :  Sony Financial Group (SFGYY )
• Number of Shares Bought :  1.0 x (# of SONY shares owned).
• For example, if you owned 100 SONY shares, you were entitled to 100 x 1.0 = 100 SFGYY  shares.
• Net Total of Purchase: Use the same value as the Amount from the dividend entry above. 

Be sure to use the same cash account for the Dividend entry and the Buy entry.

If your buy transaction included fractional SFGYY  shares, which is unlikely with a 1:1 spinoff ratio, continue to the next step. If not, you are done with this spinoff

The Sell Entry

Go to Transactions > Sell  or Accounting > Securities > Sell depending on the version of the software being used.

Here is the information you need to complete the sell.

• Date: 10/6/2025
• Select Security :  Sony Financial Group (SFGYY )
• Number of Shares Sold :  The fractional part of the shares bought in the Buy Transaction.
  • For example, if you owned 100.5 shares of SONY, you were entitled to 100.5 x 1.0 = 100.5 SFGYY  shares. Sell 0.5 shares in this example.
• Net Proceeds: Use the cash-in-lieu amount from your broker statement.

When saved, you are finally done with all transactions related to this spinoff.

NOTE 1: Since SFGYY is incorporated in Japan Go to Securities > Update security settings and choose the edit icon to the left of SFGYY in the list of securities. Go to the Advanced Settings section and choose Japan from the drop-down menu for the Country field.

NOTE 2: The value of the shares received as a dividend is determined by the Fair Market Value (FMV) of the shares on the distribution date. IRS regulations do not have one way to determine FMV. It is therefore possible these instructions and your broker may determine FMV differently resulting in a mismatch in cost basis for the SFGYY  shares held. This is not cause for concern. This is just due to the inexact nature of the tax code in this regard. Partnership tax returns have specific areas to reconcile these usually small differences. ICLUBcentral tax printer software automatically fills in these differences in the normal operation of the software using the data imported from your accounting records and that you enter from your 1099.  

Some brokers may list the FMV of the SFGYY shares received as a dividend on a statement. If you want your records to match your broker, use this FMV as the amount of the dividend received and the total cost of the buy transaction. While matching the broker is not required in such cases, many treasurers are more comfortable matching broker information.