On 15 August 2018, IAG (Insurance Australia Group) announced a capital management initiative that was settled on 26 November 2018.
Holders of IAG shares received a special dividend, and shares were consolidated, reducing the number of shares owned by each shareholder.
A total of 25c per share was paid to shareholders, made up of a 5.5c per share special dividend and a 19.5c per share return of capital.
Mclowd users should record this Capital Management Initiative as follows:
NOTE: Corporate Actions MUST be recorded in the order they occur. Please ensure you have entered the Special Dividend and Return of Capital and any other dividends received and purchases or sale or shares in IAG BEFORE you process the Consolidation/Split as shown in step 3 below.
1. Record the 5.5c per share Special Dividend received on 26/11/2018 via the INCOME tab or through Bank Data Import and Suspense Allocation.
This dividend was fully franked.
2. Click the CORPORATE ACTIONS button on the ASSET tab and select the RETURN OF CAPITAL button.
Record details as shown below. (NOTE: IAG paid 19.5c per share as a Return of Capital.)
3. Click the CONSOLIDATION/SPLIT button on the CORPORATE ACTIONS screen (accessed via the ASSETS tab)
Record the Consolidation of Shares as shown below:
NOTE: IAG issued .0976 shares for each share previously held. If you choose to enter the ratio 0.976 : 1 or .976 : 100, you should select the PER PARCEL calculation method. Otherwise, you may enter the exact number of shares issued as per advice received from IAG, and the number of shares your Fund held prior to consolidation, and choose TOTAL as the calculation method.