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Wesfarmers Capital Management

Denis Giles

How to treat return of capital and consolidation of shares that occurred today 16th Dec 2014?

Comments

Graham Boast

Step 1 - Check Current Holdings

Step 2 - Consolidation at 1 to 0.9827 shares. Your WES statement will detail the amount of shares you get. Process as a "Stock Split" dated 1 Dec 14

Check that the number of shares have decreased but the cost basis remains the same.

Step 3 - Fully Franked Dividend at $0.25 share as "Record an Income Event"

Step 4 - Return of Capital at $0.75 share

Check the cost basis has dropped by the return of capital amount.

All done!

Graham Boast 0409317366
Reckon Accredited Consultant
graham@reckonhelp.com.au
http://reckonhelp.com.au/remotesupport.htm

gavin.nicholson.au

Thanks Graham for the detailed post. However yet again I suffer at the hands of this program. Despite me entering 148 shares post split Quicken has obviously a rounding problem and now I have 147.999999 shares.

Any ideas Reckon?

Graham Boast

This should fix it

Graham

Mark_7289040

Hi Graham, I have the problem that the capital return shows the correct amount for the summary of the WES shares but the individual parcel shows a greater cost base. I only have one parcel and have noticed that capital returns are misallocated across multiple parcels but never before on a single parcel. Any ideas?

On the solution above, it's better to create a rounding problem that results in a slightly greater number of shares that you have and then sell or remove the partial share amount. This stops you having two parcels, one for the 0.000001 share and another for the 147.999999 shares.