[GNC] Stock spinoff

[john]

Companies used to send shareholders a letter stating the relative valuations of the spun off and original shares, but the last couple of spinoffs I've had they instead posted it on the original company's website and I had to Google for it. In some cases you might have to find the SEC filing for the spinoff to get the ratio. You then apply that ratio to the basis of each lot of the original stock that you own. It can be pretty tedious to create all of the splits required to reflect the basis in GnuCash. I often do it in a spreadsheet and make a docllink to that on the spinoff transaction instead.

Regards,
John Ralls


> On Dec 3, 2022, at 9:33 PM, David T. via gnucash-user <gnucash-user at gnucash.org> wrote:
> 
> Well said,  Geoff. 
> 
> I'd add that creating the new share is a simple process of making a transaction that adds the new share to its account.
> 
> It's the determination of cost basis (for both the original shares and the new share you received) that complicates things. These affect future gains calculations.
> 
> David T. ​
> 
> On Dec 4, 2022, 3:49 AM, at 3:49 AM, Geoff <cleanoutmyshed at gmail.com> wrote:
>> Hi Fred
>> 
>> First up you need more details on this transaction to determine the 
>> exact nature of the spin-off, the valuations, and whether ABC treated
>> it 
>> as a dividend, capital reduction, or combination of both.  Was there a 
>> cash payment as well?  Any fractional shares involved?  Were capital 
>> gains/losses crystallised or carried forward?
>> 
>> ABC should have sent you information about this, otherwise Google it.
>> 
>> You may find this article helpful:-
>> https://www.henssler.com/spin-offs/
>> 
>> Once you have all the details, we can suggest how to record it in
>> GnuCash.
>> 
>> 
>> Regards
>> 
>> Geoff
>> =====
>> 
>> On 4/12/2022 11:15 am, Fred Tydeman wrote:
>>> In looking at the Help file within GnuCash, I found a section on
>> Splits and
>>> Mergers.  After reading that section, I still do not know how to
>> enter a
>>> Spinoff.  That it, I have 25 shares of ABC stock.  They did some kind
>> of
>>> spin off and gave me 1 share of XYZ stock.  I still have 25 shares of
>> ABC.
>>> How do I record this?
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