Hi everyone, and in particular @stewie , @flywire and (… sorry to chirlu, but as a new member I can only mention 2 users), but also to anyone who has run into this issue!
The main problem I find myself with is that the old BAM ISIN was CA1125851040, which is different from both the new BAM (ISIN CA1130041058) and BN (old BAM: new ISIN CA11271J1075).
So if I had 100 shares of the old BAM (ISIN CA1125851040), now I have 100 shares of BN (ISIN CA11271J1075) and 25 shares of the new BAM (ISIN CA1130041058).
Has anyone found a way to change the ISIN of the old BAM for that of BN without having to rewrite the entire history of movements (in my case 20 purchases)?
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I am a new user here with PP, but I had the same issue. It is a spinoff of a new company. I recognized the value of the new shares as a dividend and then set up the new company with the same cost basis as a dividend for future tax purposes. The holding period fo r the new shares relates back to the original purchase date of the original company.
Sorry to bump this but I still haven’t recorded this transaction and don’t quite follow the above. Could someone explain to me in layman’s terms exactly what I need to do? My position in 2022 was 116 shares of Brookfield Asset Management. Now when I look at my positions in Degiro I have 116 of Brookfield Corp and 29 of Brookfield Asset Management.
Thanks in advance.
Hi Rafa, thanks but was hoping to generate some new replies since my last post as I still don’t know how to account for this.
Well, the message is stii the same. Stock split of 4 to 1 and transfer the new 29 shares to the new BAM security.
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Thanks Laura for pointing this out
Thanks, @Rafa. I’m clearly doing something wrong when I enter it into PP. Would you mind posting an idiot proof guide for the steps to take?
My situation is:
- Purchased 116 shares of BAM (five separate purchases over a couple of years)
- Sold 116 shares of BAM @ 43.15 USD for 4,851.23 EUR
- Purchased 116 shares of BN @ 43.15 USD for 4,851.23 EUR
- Purchased 29 shares of BAM @ 0.00 USD
Whatever I’ve tried doesn’t seem to tie back to what I’m seeing in Degiro. I’ve translated some of the German posts so maybe something is lost in translation…
Appreciate any help here, thanks.
So I read that you should book the proceeds as a dividend, which I’ve done so here. But where do I go from here? One comment mentions to invest a dividend equal to the opening price of the new share and buy it. How exactly do I record this?
Step 1:
Step 2??
@Laura mentioned to purchase the corresponding number of allocated shares from the booked amount. This doesn’t make sense to me though as obviously after step 1 I still have 116 shares of BAM. My end position needs to be 116 shares of BN and 29 shares of BAM.
You buy these shares. This means that you make a corresponding purchase entry.
That will be the case then. 
CU, Laura
I appreciate I may be coming across as obtuse here but bear with me. So I’ve made the corresponding purchase entry of 116 shares of BN totalling 4,851.23. I’m obviously still left with the 116 shares of BAM. How do I account for the latter and be left with 29 shares of BAM? I don’t see how the dividend transaction I posted earlier impacts what I see here.
Don´t worry.
My problem is that I have no knowledge of the details of the spin-off.
Please describe the spin-off process.
- Number of your shares on the day of the spin-off
- Number of new shares allotted
- Price of the new shares on the day of the spin-off
- Costs
CU, Laura
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Appreciate the help.
- Number of your shares on the day of the spin-off - 116 shares of BAM
- Number of new shares allotted - 116 shares of BN (@43.15 USD) and 29 shares of BAM (@0.00 USD)
- Price of the new shares on the day of the spin-off - 43.15 USD
- Costs - No other costs. Sold 116 shares for 4,851.23 EUR and purchased 116 shares of BN for 4,851.23 EUR.
I’m not sure I understood that.
The value of your Dividend is therefore calculated as follows:
- (116 x Share price BN) + (29 x Share price BAM) = Value of Dividend
You book the calculated amount as a dividend. Then you buy for this amount 116 shares of BN and 29 shares of BAM.
I don’t understand the connection with the spin-off.
CU, Laura
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@stewie
I´m not sure if we get to the point in PP that you see the exact figures of Degiro, but maybe I can shed some light on the matter in general terms.
Starting Point: You had 116 shares of BAM in December 2022
1.) BAM renamed in BN → You now have 116 shares of BN
2.) BN distributed 25% of it´s business to (new) BAM → you received fair share → 29 shares
You stated that you haven´t paid for the shares of new BAM and that is correct to the point that you haven´t paid money. But you have paid in a form with value, because your 116 shares of BN should have been (in a idealistic world) 25% less valuable from this exact point on, because 25% of the assets were distributed to another company.
Possible Solution: You book a dividend in BN in the amount of the figure you would have paid for the acquisition of the new BAM shares. If I looked it up correctly the BAM shares were at 32,00USD on Dec. 12 2022. So the dividend would be 928,00USD. With this 928,00USD you “buy” the 29 shares of new BAM with 32,00USD each.
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In that case, it will be:
(116 x 43.15 = 5,005.40 USD / 4,851.23 EUR) + (29 x 43.15 = 1,251.35 USD / 1,213.05 EUR) = 6,064.28 EUR
With regards to the connection with the spin-off, I don’t know what other information I can provide here. These are the transactions as they appear in Degiro, so you can see exactly what I’m working with:
Thanks for this. Booking the dividend in BN is fine but how do I “buy” the 29 shares of BAM if the dividend does not appear in my cash account? If I go to buy any security the drop down option just gives me my cash account.
Also, instead of 32.00 USD, would it not be 43.15 USD as per the screenshot in my reply to Laura?
- You book a dividend to your clearing account
- You then buy the securities from this clearing account
CU, Laura
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I looked it up on Yahoo Finance and other places. The price I see in USD is always around 32 USD on 12 Dec 2022 for BAM. Please look it up for yourself with your preferred program.
If you found another price or if you want to stay with the 43,15 USD it is totally fine with me.