[GNC] Australian cash residuals - Non- GnuCash question

Geoff cleanoutmyshed at gmail.com
Tue Jul 27 06:54:59 EDT 2021


Hi Chris

Usually the cash residual is carried forward and is included in the 
calculation of your DRP (dividend reinvestment plan) shares in the next 
dividend.

The balance is tallied at the individual SRN level within each company 
by the share registry.  You should see this on your dividend statements 
for each SRN, which should show you the balance brought forward from the 
last dividend, and the remaining balance carried forward after your 
shares are purchased.  (See attached Wesfarmers advice for an example).

I am not an accountant, but in GnuCash I lump all such balances into a 
single "clearing account" called Assets:DRP Cash Carried Forward" 
because (at least with my portfolio) it is never a material amount.

To extend the topic, the share registries have a process to consolidate 
or merge your multiple SRNs in a company into a single holding if you 
wish to reduce your administrative burden:-

https://boardroomlimited.com.au/corp/assets/pdf/investor-forms/share-registry/Consolidation%20of%20Holdings.pdf

https://www-au.computershare.com/Investor/Content/ab9d6057-5a56-4e7e-a32b-02716d5268a7

https://www.linkmarketservices.com.au/corporate/forms/holding-management/Link_ASN001_Interactive.pdf

Furthermore, if you trade with a broker, you can request that the SRN 
holdings be converted onto your CHESS HIN (holder identification 
number).  Most of the online brokers offer this via self-service, 
provided the registration details (name & address) match up.  For example:-

https://www.nabtrade.com.au/investor/support/faqs/getting-started/transfer-issuer-sponsored-shares


Hope this helps.

Regards

Geoff
=====

On 27/07/2021 6:28 pm, Chris Good wrote:
> Hi,
> 
>   
> 
> I apologize in advance for this non GnuCash question but I searched the
> internet and could not find an answer
> 
> and I don't think I could get an answer I would trust from the Australian
> share registries help lines.
> 
> I wonder if any Australian investors can help me with this.
> 
>   
> 
> If you reinvest your dividends and have multiple share holdings in a
> particular company under different
> 
> SRN's (Security Ref Nos), is the cash residual (difference between total
> dividend amount and the value of the
> 
> shares added because of the dividend reinvestment) held by SRN
> (Investor/Company/SRN) or just a total per
> 
> investor (Investor/Company)?
> 
>   
> 
> For those non Australians, who may be wondering, this cash residual occurs
> because, in my experience,
> 
> all Australian companies dividend reinvestment plans only reinvest a whole
> no of shares.
> 
> (Although there has been 1 company that actually rounds up the no of shares
> issued, so actually gives you more
> 
> shares than the dividend total - a real pain to account for).
> 
>   
> 
> I'd like to know because I've recently had to start dealing with multiple
> SRN's per company and I have another
> 
> System I wrote (MS Access if anyone Aussie is interested - pls email me
> direct) which I need to modify to handle
> 
> the multiple SRN's per company.
> 
>   
> 
> I suppose different share registries could do different things, so I'm
> really mostly interested in what
> 
> ComputerShare & Link do.
> 
>   
> 
> Regards,
> 
> Chris Good
> 
>   
> 
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