How to do a scheme of arrangement in Reckon Personal Plus

  • 1
  • Question
  • Updated 2 years ago
Tabcorp took over Tatts group by a SOA.  Tatts received 0.80 Tabcorp shares and $0.265 cash for every share held, and a $0.016 Tatts special dividend.  How is this processed in the investments section of Reckon as I don't see a SOA option and the transfer to the new security is not working
Photo of Leanne Veitch

Leanne Veitch

  • 190 Points 100 badge 2x thumb
  • Unsure

Posted 2 years ago

  • 1
Photo of Shakir

Shakir, Alum

  • 1,372 Points 1k badge 2x thumb
Hi Leanne, thanks for reaching out to us.

Here is the knowledge base article to handle such transaction in Reckon Accounts Personal range software.

Hope it helps

Photo of John Campbell

John Campbell

  • 4,092 Points 4k badge 2x thumb

When recording these transactions, my main aim is to preserve the capital value I am holding.

First, the special dividend should be recorded as a dividend, hopefully franked.

Then, the cash return is a return of capital so will reduce the capital value of Tatts shares you held.

You now have the reduced/residual capital value of your Tatts shares.

If you don't have TABCORP shares, you could simply do a restructure to 0.8 new shares per old share and rename the security, ie a non-capital gains event.

Or you could document sale and buy transactions for the same capital value. Two possible capital values could be used.

1) I would document sell/buy for the residual capital value of Tatts shares, documenting that no capital gains event took place.

2) Alternatively you could document sell/buy for the current market value of Tatts shares. This may be a capital gains event.

The documentation supplied by Tatts will probably indicate if this is required, ie a capital gains event needs to be declared.

Photo of Leanne Veitch

Leanne Veitch

  • 190 Points 100 badge 2x thumb
Thanks....will give it a go