The following steps describe the basic steps for entering a merger in Club Accounting 3.
For general steps on entering a merger in myICLUB, please see:
For information on specific Mergers, please see the Mergers section of the FAQ site at:
1) From the top toolbar, selectTransactions>Merger
2)Transaction Date- You may use the dropdown calendar function to select a date, or you can type in the date directly into the Transaction Date field. The default is the current date.
3)Select Transaction Type- this should already be set toMerger.
4)Select Account- select the account to receive any cash-in-lieu from this transaction. The dropdown list includes all active accounts.
5)Select Old Security from the drop-down list, choose old company, the one you held prior to the merger. If the security does not appear on the list, selectShow Inactivesto show securities that have been sold.
6)Old Security Price Per Share Leave this blank.
7)Cash Received Enter any cash received in place of a fractional share. Club Accounting will then automatically enter a Sell transaction for the fractional share for you for this amount and any fractional share entered in theShares Receivedfield. The transaction cannot be saved if an amount is entered here but no fractional share is included in theShares Receivedfield.
Note: If your statement shows cash-in-lieu of a fractional share, but does not give the size of the fractional share, you can calculate the fractional share. Multiply your shares in the old company by the merger ratio. The ratio should be in the information packet sent by the old company. It is nearly always posted on the web sites of both the old and new companies, under Investor Relations or Stockholder Information.
The club owned 9 shares of Stock ABC.
Each holder of ABC received 1 share of XYZ for each 2 shares of ABC they held.
The club received 4.5 shares of XYZ
The 0.5 shares are sold off at the going rate of XYZ on the date of the merger. If that's $20, the club gets $10 cash-in-lieu.
8)Select New Security Use the row next to the security that is acquiring the security you owned. If you did not already own shares of the new security before the merger, clickAdd New Securityto add a security profile first.
9)Shares Received Click in the field to enter the number of shares received. You must include any fractional share if cash was received for that fractional share. Club Accounting will then automatically enter a Sell transaction for the fractional share for you for the amount entered in the Cash Received field. For the example above, you would enter 4.5 shares, not just 4 shares, even if your broker statement says only 4 shares.
10)Price per Share Click in the field to enter the price of a single share of the new company on the day of the merger.
Click theOKbutton to add the transaction. TheConfirm Transactionwindow appears asking you to review the details of the entry. If the information is correct, click theOKbutton to record the transaction. If not, click theCancelbutton to return to theEnter New Transaction Mergerscreen.
Click theCancelbutton to close theEnter New Transactionscreen without adding a transaction.