News Corp spun off 21st Century Fox. News Corp is considered the parent company. News Corp also executed a name and ticker symbol change.
The remaining basis percentage is calculated from the value of the parent company compared to the total value of the 2 companies on the effective date. The average of the opening and closing prices is used to calculate the value of each company. Brokerage firms tend to use the average price more often so using average price will bring your records closer to your broker’s.
Resolution:
In early July 2013, Newscorp spun off their publishing division. Both companies also went through a name and ticker symbol change.
While the spinoff transaction itself is not unusual, this case does require some extra steps to re-name the companies involved.
With this in mind, we suggest to first rename and change the ticker symbol for the parent company.
In Club Accounting 3:
• Click the SECURITIES heading on the left hand side of the page
• Find the News Corp stock in the list, and double-click it.
• Change the name to 21st Century Fox, and the ticker symbol to FOX or FOXA, depending if your club originally had NWS or NWSA shares.
• Click OK
In Club Accounting Online (myiclub.com)
• When signed in to myiclub.com, click the ACCOUNTING tab near the top of the page.
• Click the SECURITIES heading on the left hand side of the page.
• Click either SECURITY SETTINGS on the left hand side of the page, or UPDATE SECURITY SETTINGS near the top of the page.
• On the security Settings page, click the EDIT link next to the listing for News Corp.
• On the following page, change the Company name to Twenty-First Century Fox, and the symbol to FOX or FOXA, depending if your club originally had NWS or NWSA shares.
• Note that there is a box titled Symbol, and also a box titled Quote Symbol near the bottom of the page. Make sure that the updated ticker symbol is entered in both places.
• Click the SUBMIT button near the bottom right-hand corner of the page to save any changes.
With the name change complete, this becomes a simple spinoff transaction in the accounting software. The information below is based on the information available from web sites with historical price information and the shares of each company received in this transaction from the News Corp web site. The main information paragraph is for class B shares. Below that will be the information for class A shares.
The Spinoff Entry
Go to Transactions > Spinoff or Accounting > Securities > Record spinoff of securities depending on the version of the software being used. If you are unfamiliar with spinoff transactions you can get help at this url: https://www.iclub.com/support/kb/default.asp?page=normal_spinoff
Here is the information you need to complete the spinoff if you owned class B shares.
Date: 6/28/2013
Select Parent Security (or Parent Company) : Twenty-First Century Fox (FOX)
Remaining Basis Percentage: 65.19
Cash received: See your broker statement for cash-in-lieu received
Spinoff Security (or Symbol of New Company) : News Corp (NWS)
Shares received : .25x (#of FOX shares owned) (Remember to include fractional shares.)
For example, if you owned 100 FOX shares, you should receive .25 x 100 = 25 NWS shares.
Price Per Share : 32.75 (An average of the opening and closing price on 6/28/2013)
Save the transaction and the spinoff has been entered.
Here is the information you need to complete the spinoff if you owned class A shares.
Date: 6/28/2013
Select Parent Security (or Parent Company) : Twenty-First Century Fox class A (FOXA)
Remaining Basis Percentage: 65.41
Cash received: See your broker statement for cash-in-lieu received
Spinoff Security (or Symbol of New Company) : News Corp class A (NWSA)
Shares received : .25x (#of FOXA shares owned) (Remember to include fractional shares.)
For example, if you owned 100 FOXA shares, you should receive .25 x 100 = 25 NWSA shares.
Price Per Share : 32.52 (An average of the opening and closing price on 6/28/2013)
Save the transaction and the spinoff has been entered.
