BGL does 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.
On 7 November 2013, shareholders approved a return of capital and share consolidation which occurred on 26 November 2013.
On 21 November 2013, the requirements for the partially protected shares to be reclassified were satisfied. The reclassification occurred on 9 December 2013. Under the terms and conditions of issue, partially protected shares were automatically reclassified into Wesfarmers ordinary shares on a one for one basis with no additional Wesfarmers ordinary shares to be issued.
Refer to the Wesfarmers website for more detailed information.
Prior to processing the corporate action, ensure that all transactions relating to WESN have been correctly entered in SF360. You can check your investment reports to see if the current holdings are correct.
Summary of Changes
|26 November 2013||Return of Capital||$0.50 per share||Step 1 - Return of Capital|
|Consolidation||0.9876 (rounded to next whole number)||Step 2 - Consolidation|
|9 December 2013||Reclassification||All partially protected shares reclassified to Wesfarmers ordinary shares on a one for one basis.||Step 3 - Reclassification|
Step 1 - Return of Capital
Amount per Security
Number of Securities Held
|Ordinary shares (WES)||$0.50||100||$50|
|Partially protected shares (WESN)||$0.50||200||$100|
You need to record a return of capital for both WES and WESN.
To record a return of capital:
- Go to Accounting | Transaction List.
- Select New Transaction and then Bank Statement from the drop-down list.
You have to input "0" in the Units field and should not leave the field blank. Otherwise, this will be treated as a manual revaluation by SF360.
Step 2 - Consolidation
|Ordinary shares (WES)||100||99|
|Partially protected shares (WESN)||200||198|
You need to record a consolidation for both WES and WESN.
- Go to Accounting | Transaction List if you are not on that screen.
- Select New Transaction|Corporate Action.
Step 3 - Reclassification of Wesfarmers Partially Protected Shares (WESN) to Wesfarmers Limited Ordinary Shares (WES)
On 9 December 2013, the Wesfarmers Partially Protected Shares (WESN) were reclassified to Wesfarmers Limited Ordinary Shares (WES) on a one for one basis.
|Ordinary shares (WES)||99||297|
|Partially protected shares (WESN)||198||0|
To record the reclassification, you need to dispose of the WESN shares at cost and record the acquisition of the WES shares.
To dispose of the units at cost, you need to untick the Asset subject to CGT box in the Chart of Accounts:
- Go to the Chart of Accounts and locate 77600/WESN.
- Click on the investment to edit the account and select More Details>>.
- Untick the Asset subject to CGT box.
- Select Save.
The reclassification can be recorded as follows:
Go Accounting | Transaction List and select New Transaction | Journal.
For the acquisition of WES shares, ensure that the contract date is changed to match the original purchase date of the WESN shares.
In this example, the WESN shares were originally purchased on 01/07/2010.