Bonus Issue (Manual)

Note

BGL do not provide accounting or taxation advice. The following is designed to act as a guide for Simple Fund 360 users. It is not designed to be accounting or tax advice and should not be taken as a strict guideline. Other methods that are more suitable may be used instead of these steps.

Overview

---

A bonus issue is an offer of shares/units at no additional cost to the security holder in proportion to the number of shares/units currently held, for example, one bonus share for every five shares held.

This article details two methods on how the Bonus Issue can be manually processed. 

The first option is only possible when a Bonus Issue is offered for a currently held investment (the fund holds units in the investment:

1. Process a manual bonus issue via the Corporate Action Screen.
   
   

The second option is required when the Bonus Issue is offered for an investment that is not currently held in the fund:

2. Process a manual bonus issue via the Transaction List. 

For more information on how to automate your corporate actions through notifications, click here.

Method 1: Process a Bonus Issue - Corporate Action Screen

---

From the Main Toolbar, go to Investments.
Select Corporate actions from the list.

This Bonus Issue is an example only.

1. Select New Corporate Action.

2. Select the Security to process.

3. Select Bonus Issue as the Corporate Action Type.

4. Select the chart account for the corporate action (for example, 77600/BHP.AX).

5. Input the Effective Date (Corporate Action Ex Date) and the Corporate Action Date (Transaction Date). 

6. Input the bonus issue units (the current units on hand for the investment will appear on the left). The Units After Bonus Issue field will display the increase in units.

7. The Corporate Action Summary will appear below. Select Process once you have confirmed the bonus issue details are correct. 

The bonus issue will display as a Transaction in the Transaction List.

Method 2: Process a Bonus Issue - Transaction List Screen

---

A bonus issue can also be posted via a manual transaction. 

From the Main Toolbar, go to Accounting.
Select Transaction List from the list.

Select New Transaction | Journal.

DR	Select the Investment Account	$0
Enter the # units issued as part of the Bonus Issue.
CR	Select the 60400 Bank Account.	$0

Ensure that the correct contract date is entered in the more details panel of the investment account.

Select Post.

How to delete a Bonus Issue

---

If you are required to change a corporate action, you can delete and re-process the action from the Corporate Action screen. 

From the Main Toolbar, go to Investments.
Select Corporate actions from the list.

Alternatively, you can access the Corporate Actions screen from the Transaction List: 

Locate the corporate action to delete. Select the check box located next to the transaction and Delete. 

If disposals have been processed after the corporate action date for the investment it is recommended to delete the disposal first from the Transaction List.