How Do I Enter a Spinoff in Club Accounting 3?

The following steps describe the basic steps for entering a spinoffin Club Accounting 3.

For information on specific Spinoffs, please see the Spinoff section of the FAQ site at:

https://www.iclub.com/faq/index.php?action=search&tagging_id=20

 

Information required to enteranyspinoff:

 

  1. Total shares owned of the parent company
  2. - provided by the software
  3. Shares received in daughter company, including any fractional shares
  4. - from the broker statement
  5. Cash received
  6. - from the broker statement
  7. Price per share for daughter company
  8. - from any stock quote provider, like https://finance.yahoo.com
  9. Number of daughter companies
  10. - from the company's Investor Relations
  11. Spinoff date
  12. - from the company's Investor Relations
  13. Remaining Basis Fraction of Parent Company. (Examples: .94524, 94.524%) - from the company's Investor Relations
    If the information you receive on the spinoff only gives you the Child basis fraction, subtract this from 1 to get the Parent Remaining Basis Fraction
  14. Fractional shares
    - Most broker statements only give you the whole shares, selling off the fractional shares for cash. You may have to calculate the fractional shares. For example, if you owned 39 shares of Stock ABC, each holder of ABC received 1 share of XYZ for every 10 shares of ABC they held. The club gets 3.9 shares of XYZ, and the 0.9 shares are sold off at the going rate of XYZ on the date of the merger. If that's $20, the club gets $18 cash-in-lieu.

 

 

To enter a new Spinoff transaction in Club Accounting 3

 

1) From the top toolbar, selectTransactions>Spinoff

 

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 toSpinoff.

 

4)Select Account- select the account to receive any cash-in-lieu from this transaction. The dropdown list includes all active accounts.

 

5)Select Parent Security from the drop-down list, choose the parent company, the one that issued the spinoff. 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)Remaining Basis Percentage Enter the remaining basis percentageas a percentage (XX.XX%), as provided by the Parent's Investor Relations.

 

8)Spinoff Security clickAdd New Securityto add a security profile first. Then, use the row with the new daughter security for the next two steps.

 

9)Shares Received Click in the field to enter the number of shares received. You must include any fractional shares 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 3.9 shares, not just 3 shares, even if your broker statement says only 3 shares.

 

10)Price per Share Click in the field to enter the price of a single share of the daughter company on the day of the spinoff.

 

11)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.

 

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.