DowDupont spinoffs

How best to record the spinoffs of DOW and CTVA along with change DD?
2 people have
this question
+1
Reply
  • (some HTML allowed)
    How does this make you feel?
    Add Image
    I'm

    e.g. indifferent, undecided, unconcerned happy, confident, thankful, excited kidding, amused, unsure, silly sad, anxious, confused, frustrated

  • Hi Rob, Douglas,

    We are currently looking into the different corporate actions regarding DOW, CTVA and the change to DD.

    I will post a set of instructions for how best to record these events as soon as possible.
  • (some HTML allowed)
    How does this make you feel?
    Add Image
    I'm

    e.g. indifferent, undecided, unconcerned happy, confident, thankful, excited kidding, amused, unsure, silly sad, anxious, confused, frustrated

  • Hi Rob, Douglas,

    I'll first address the DOW.NYSE spinoff.

    According to this letter sent to DowDuPont Inc shareholders, https://s23.q4cdn.com/116192123/files...

    DWDP.NYSE holders received one share in DOW.NYSE on the 1st April for every three shares they held at close of trading on the 31st March 2019.

    To track this in Sharesight, I would suggest the following:

    1. Create an adjust cost base transaction dated the 1st April 2019 against DWDP.

    You can retrieve your existing cost base from the Holding Information tab. You need to reduce your cost base in DWDP by 33.5620% (this assumes you will receive whole shares in DOW. The letter linked above outlines how to separate out the fractional portion).

    I'd suggest you don't use the calculator on the adjust cost base form to work out the cost base reduction.

    2. Create a payout to reflect any cash payment received. You can only be allocated whole numbers of shares in DOW, therefore any difference is paid up in cash.

    3. Create an Opening balance on the 1st April 2019 against DOW.NYSE. Make sure the cost base you enter when creating this opening balance matches the cost base reduction against DWDP.

    Now for the CTVA.NYSE spinoff

    According to this article,
    http://www.insideindianabusiness.com/...

    DWDP.NYSE holders received one share in CTVA.NYSE on the 1st June 2019 for every three shares they held at close of trading on the 24th May 2019.

    To track this in Sharesight;

    1. Create an adjust cost base transaction dated the 1st June 2019 against DWDP.

    You can retrieve your existing cost base from the Holding Information tab. I assume the cost base reduction will need to be done in a similar way to the spin off of DOW, but I haven’t been able to track down any document that clarifies this.

    Hopefully you have received a shareholder letter that details what the cost base reduction should be.

    2. Create a payout to reflect any cash received.

    3. Create an Opening balance on the 1st June 2019 against CTVA.NYSE. Make sure the cost base you enter when creating this opening balance matches the cost base reduction against DWDP.

    Now for the reverse split on a 1 for 3 basis of DWDP.NYSE into DD.NYSE

    The following article sheds some light on this
    https://seekingalpha.com/article/4266...

    To track this in Sharesight

    1. In the bottom right of your DWDP.NYS holding under Holding settings, select 'Merge this holding'
    2. Set the date of merger as 1st June 2019
    3. Set the quantity to match your new holdings in DD.NYSE.

    IMPORTANT DISCLAIMER: I am not a tax advisor and I don't know your tax circumstances.
  • (some HTML allowed)
    How does this make you feel?
    Add Image
    I'm

    e.g. indifferent, undecided, unconcerned happy, confident, thankful, excited kidding, amused, unsure, silly sad, anxious, confused, frustrated