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.
Templeton Global Growth Fund (ASX: TGG) bought back 18.36% of its shares for cash consideration of $1.579 per share (capital component $1.281 and dividend component $0.298).
WAM Global Limited (ASX: WGB) acquired the remaining TGG shares for 0.625 new WAM Global shares and 0.625 new WAM Global options per TGG share.
In the Corporate Action screen, the notification for TGG merger/takeover will be displayed if the fund has a share balance as at the ex-date of the scheme. Follow the on-screen instructions to review and process the corporate action.
Enter the Total Market Value of Shares Received.
Upon processing, Simple Fund 360 will reduce the units held in TGG.AX and increase the units of WGB.AX
However, the corporate action notification does not account for the share options received. In this case, a manual journal entry needs to be processed.
|From the Main Toolbar, go
|Select Transaction List.|
From the Transaction List, click New Transaction | Journal
|DR||77600/WGBO.AX - Wam Global Limited||Input the cost base as zero as no premium is being paid.|
|Ensure the units have been entered along with the contract date in the more details panel.|
|CR||60400/BANK||Input the double-entry.|
A fund has a holding of 1000 TGG shares purchased on 30/06/2021 for $4.00
As a result of the takeover, and bonus issue of options the following will occur:
|Units after Corporate Action|
|TGG (Templeton Global Growth Fund shares)||0|
|WGB.AX (WAM Global shares)||625 (1000 x 0.625)|
|WGBO.AX (WAM Global options)||625 (1000 x 0.625)|
Process the Corporate Action notification on ex/balance date.
Upon processing, Simple Fund 360 will reduce the units held in TGG.AX to zero and increase the units of WGB.AX to 625 units.
A summary will display:
Select Process Corporate Actions.
Proceed to process the manual journal entry to account for the Share Options.
|DR||77600/WGBO.AX - Wam Global Limited||0|
|625 units along with the corporate action date of 29/10/2021 as the contract date in the more details panel.|