Share Rights processing now available through the Corporate Actions module. Refer to Share Rights (Notifications) form more.
Details
The way you process options/rights (Entitlement) is dependent on the scenario.
For rights issue, it depends whether the rights are renounceable or non-renounceable. Non-renounceable rights cannot be sold on the market or transferred.
Use the Share Rights (Notifications) feature in the Corporate Actions module to process Rights based on fund investment holdings.
The following is a general guide on how you can record options/rights issue in Simple Fund 360.
| If the trustees: | You will need to: |
|---|---|
| Exercised their Entitlement |
Enter a purchase transaction for the new shares at the discounted price. |
| Sold their Entitlement through ASX |
Enter a purchase for the ASX code of the option or rights with a cost base of $0 and sell the Entitlement for the amount received. |
| Did not exercise or sell their Entitlement and received a premium at the end of the process |
Option A: Treated as a Capital Gains Enter a purchase for the ASX code of the option or rights with a cost base of $0 and sell the Entitlement for the amount received. Option B: Treated as Unfranked Dividend or Other Income If the tax treatment based on a tax ruling should be applied, record the premium as either an unfranked dividend or other income. |
| Did not exercise or sell their Entitlement and did not receive a premium at the end of the process |
No transactions are required unless there was a cost base for the option/right. If so, process an Investment Disposal (zero consideration) to recognise the capital loss on the premium paid. |
Examples
You can use the following as examples: