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MGL - SYD In Specie Distribution Expand / Collapse
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Posted 16/05/2014 12:43:39 AM


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Hello all,

On the 20th of December 2013, Macquarie Group Limited (MGL) recorded an in specie distribution of one Sydney Airport stapled security for every one MGL fully paid ordinary share (1:1 ratio).

We thought we'd post something to assist those trying to process this particular transaction.

Important!
Ensure you have a "Clearing" bank account via Bank Accounts > Manage Bank Accounts and if not, create a new bank account. This "Clearing" account is used to move money around the various screens without interrupting your main bank account.


Capital Repayment
1.) Go to Asset Utilities > Capital Repayment.

2.) Select the 'Capital Repayment per Unit' method and enter "2.5737" which is 69% of the SYD $3.73 per unit amount, as shown on the statement.

3.) Select your "Clearing" bank account as the account to receive the funds from this capital repayment.

Important!
The current balance of the Clearing bank account (DR) will now reflect the Capital Return Amount shown on the statement.


Distribution
4.) Go to Cash and Bank Accounts > Distribution.

5.) Select your "Clearing" bank account as the account to receive the funds from this distribution.

6.) The Total Distribution Amount is the total statement amount less Capital Return Amount, and the components you need to enter are as follows:
--- Franked Amount: Franked Dividend Amount
--- Franking Percentage: 40.00
--- Imputation Credit: automatically calculated
--- Foreign Income: Unfranked Dividend Amount (stated under the Special Dividend amount note)

Important!
The current balance of the Clearing bank account (DR) will now reflect the Net Distribution amount shown on the statement. This amount is equal to the Capital Return Amount + Special Dividend.


In Specie SYD
7.) Go to Assets > Buy and Manage > Shares and record the following at a minimum:
--- Purchase Type: New Purchase
--- Code: SYD
--- Name: Sydney Airport
--- Shortname: Sydney Airport
--- Purchase Date: 13/01/2014
--- Cost per unit: $3.73
--- Number of units: Shares Held
--- Bank Account: "Clearing" bank account
--- Transaction to Generate: General Journal

Important!
The current balance of the Clearing bank account will now be back to $0.00. The previous DR balance has had a CR applied to it as a result of the SYD in specie purchase above.


Please feel free to reply to this post or contact us via info@mysf.com.au if you have any queries.

Regards,
MySF
Post #4956
Posted 16/05/2014 5:10:25 PM
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Last Login: 20/03/2017 5:06:51 PM
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A somewhat related question.

With regards to selecting "Transaction to Generate" what is the difference between "cash payment" and "general journal" and when is it appropriate to use one or the other?
Post #4957
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