Assets

4.5.3 Assets: Corporate Actions – Bonus Share

A Bonus Share Issue (sometimes referred to as ”Scrip Issue”) is an issue of free shares, paid for by the issuing company from their capital reserves. The purpose is to increase the liquidity of the company’s shares in the market, by increasing the number of shares in circulation (which reduces the share price). Bonus shares are issued according to a ratio: n shares for each share you currently hold.

To record an issue of bonus shares, click CORPORATE ACTIONS on the ASSETS menu, then BONUS SHARE.

Mclowd displays:

Assets_CorpActions_BonusShare

Enter the Record Date by selecting from the popup calendar.

Select the Asset from the assets list.

Mclowd displays the Assets Shares Data (purchase date, CGT date, volume and price per unit.)


NOTE: The below screen is for example purposes only. It is not intended to suggest that Woolworths issued bonus shares on that date.


Assets_CorpActions_BonusShare_selected

Enter the Posting Date by selection from the popup calendar.

Enter the Ratio (number of bonus shares issued) to number of shares.


NOTE: Typically this will be n.nn shares per share, in which case the number of Existing shares is 1.


Click VIEW REVISED ASSET DATA.

Assets_CorpActions_BonusShare_complete

Mclowd now displays the Asset record showing the adjusted volume of shares held and the new price per unit. You can see that, in the example, the number of shares held increased from 350 to 721, and the price per share reduced from $22.60 to $10.97.

When you are satisfied that the data entered is correct, click SAVE.


about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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