Thank you for your help. I had to read it a couple of times, but it made
sense in the end :-)))
Regards; Les

"Cal Learner-- MVP" wrote:

- quote -

In microsoft.public.money, LesG wrote:

- quote -

http://support.microsoft.com/kb/179585/en-us spinoff (demerger)
methods for versions or securities where you don't have the spinoff
(demerger) built-in. However it suggests ReturnOfCapital, and
TotalReturn (and probably other Portfolio columns) get messed up
with ROC
Here is a case example using split:

No money issued other than CIL of fractional share
Example holding 100 OldCo shares you retain. You bought them
at $30 per share on 3/3/98. Total basis =$3000.
This has been ruled to be a tax-free spinoff.
New shares issued 1 for every 3 originally held.
Value of OldCo share after spinoff is $27.
Value of one NewCo share is 18.

Basis to allocate to NewCo shares is
3000*(100*27) / ((100*27)+(33.3333*18)) = 2454.55

Basis to allocate to NewCo shares is
3000*(33.3333*18) / ((100*27)+(33.3333*18)) = 545.45

Split NewCo to give ratio very close to 3000 to 2454.55 but express
it a ratio of integers between 1 an 65535. In this case you can
split the shares 60000 shares for every 49091 shares. This will
give 122.222 shares. I would tell Money to not retain fractional
shares. Money will generate a sell for .222 shares which you will
delete/void. The reason for doing that is it handles the problem
of there being residual fractional shares that are beyond the
precision of the displayed value. Remove 22 shares to bring your
holdings of OldCo to 100. Remove any corresponding entry in your
tax program come tax time.

Enter a Buy or Add Shares for NewCo of 33.333 shares for a total of
545.45. Date the transaction for 3/3/98. Assuming you will not
retain fractional shares and receive 5.99 in lieu of fractional
share, Sell .222 shares for a total of 5.99. Adjust the
transaction if you find later you receive a different CIL amount.
Memorialize this with a comment in the details of NewCo and OldCo.

Hi Group

I am trying to enter a Demerger transaction in Money 12. The Help file
suggests the following:
1.On the Investing menu, click Portfolio .
2.In the left pane, click Record a special activity , and then click Record
a demerger .
3.Follow the instructions on the screen.

Except there is only "Transfer an account" and "Record a split", no mention
of a demerger. How do I record a demerger?

Thanks for your replies.
Regards: Les