Splits, mergers, and spinoffs

Splits, mergers, and spinoffs change a holding without being registered as ordinary purchases and sales. These events operate on the FIFO positions present at the selected date and time. Make sure the earlier transaction history is complete before registering them.

Split and reverse split

A split changes the number of shares in each open FIFO position. The total cost basis and accumulated shielding deduction are preserved but allocated across the new number of shares.

Fields

• Security is the share or fund whose quantity will change.
• Date and time specify when the new quantity takes effect in the event sequence.
• Quantity in is the number of old shares in the ratio.
• Quantity out is the number of new shares in the ratio.
• Comment can contain the company’s description or a reference to the documentation.

Enter the ratio, not the entire holding. For a split in which one old share becomes four new shares, enter Quantity in = 1 and Quantity out = 4. For a reverse split in which ten old shares become one new share, enter Quantity in = 10 and Quantity out = 1.

AksjeFiks multiplies the quantity in every open position by the ratio of quantity out to quantity in. Afterwards, check that the total quantity is correct and that the combined cost basis is unchanged.

Merger

Use a merger when shares in one company are exchanged for shares in another. Both the original and receiving companies must have been created as securities before you register the event.

Enter:

• the company whose shares are surrendered
• the receiving company
• the date and time of the exchange
• the number of old and new shares in the exchange ratio
• a comment for each company

The calculation closes the holding in the original company. AksjeFiks automatically creates incoming positions in the receiving company. The original FIFO dates, accounts, cost bases, and any accumulated shielding deductions are carried forward. Quantities are recalculated using the exchange ratio.

The incoming entries displayed as Merger in are calculated from the original merger event. Edit Merger out if the companies, date, or exchange ratio need to be changed.

Spinoff

Use a spinoff when part of a company is transferred to another company and the shareholder receives shares in the spun-off company. Both the original and spun-off companies must exist as securities.

Retention fraction

The retention fraction specifies the proportion of the cost basis and accumulated shielding deduction that remains in the parent company. Enter it as a decimal: 0.80 means that 80 percent remains in the parent and 20 percent is transferred to the spun-off company.

Use the allocation stated in the corporate-action documentation. It affects future gains, losses, and shielding deductions for both companies.

Quantity ratio

Old shares and New shares specify how many shares in the spun-off company are received relative to the holding in the parent. If one new share is received for five old shares, enter 5 old shares and 1 new share.

AksjeFiks keeps the number of parent-company shares unchanged but reduces their cost basis and shielding deduction by the transferred proportion. At the same time, it automatically creates incoming FIFO positions in the spun-off company with:

• quantities based on the specified ratio
• the same original acquisition dates and accounts as the parent-company positions
• the transferred proportion of the cost basis and shielding deduction

Entries displayed as Spinoff in are calculated from Spinoff out and cannot be corrected independently. Edit the original spinoff event instead.

Date, time, and rounding

The corporate action processes the positions that are open when the event occurs. If a purchase or sale takes place on the same day, the times must place the events in the correct order.

For mergers and spinoffs, new quantities are calculated to a maximum of six decimal places. If the corporate action includes cash in lieu of fractional shares or other terms, the split, merger, or spinoff event may not be sufficient on its own. Register and document any additional transactions in accordance with the supporting documentation.

Checks after registration

Compare the following before and after the event:

• the quantity in each company
• the sum of the cost bases
• the original FIFO dates and accounts
• the allocation of accumulated shielding deductions
• the automatically created incoming events

If anything is incorrect, edit the source event. The incoming positions will then be recalculated automatically.