Changes to the question

How do I record a company demerger (spin-off)?

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  • April 03, 2014 00:11
    Scott Ryburn, the poster:
    Removed a reply in this topic
    Reason: Remove to avoid confusion as the original topic has now been updated based on this reply
  • April 03, 2014 00:11
    Scott Ryburn
    Removed a reply in this topic
    Reason: As this is an FAQ topic, I have updated the original topic with new information based on our recently introduced 'Adjust Cost Base' transaction. I am removing this topic only as it no longer makes sense in the context of the updated information, so may ca
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  • January 31, 2014 03:30
    Scott Ryburn
    Change in reply by Scott Ryburn to Hi Mike,<br><br>For Orora you can generally just record a single trade to record the new shares with their cost base on the date that you acquired them. The only complexity in your case is that if a proportion of your Amcor shares were acquired pre 1985, the same proportion of your Orora shares are treated as pre-CGT assets, so you may want to split out the pre-1985 portion as a separate trade.<br><br>For Amcor, a capital return adjusts the cost base on a cents per share basis. In other words the return of capital adjustment apportions the amount in a ratio based on the quantity of each share parcel. In this case I understand that the capital reduction should be apportioned between the share parcels in a ratio based on the value (rather than quantity) of each share parcel. I will see what we can to to avoid you from having to manually calculate these amounts. I will provide an update early next week.<br><br>Note: I have edited this reply as it was originally incorrect.<br>.
  • August 07, 2011 22:57
    Scott Ryburn
    Changed title to How do I record a company demerger (spin-off)?
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