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Shares reverse split and S104 Pool

Shares reverse split and S104 Pool

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Good morning

I know how to deal with bonus issues in a S104 Pool of shares but I am unsure about the treatment of a reverse split (e.g. 10 shares become 4 shares). 

This is how I would account for it :

date                      number of shares                         value

xx/xx/20xx            10,0000                                       £30,000

xx/xx/20xx            10,0000                                       £30,000

total                       20,0000                                      £60,000

reverse split           8,000                                         Nil

(1 -> 2.5 )

c/f at xx/xx/20xx     8,000                                         £60,000

Is this correct?

Thanks

 

Replies (2)

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By johngroganjga
28th May 2014 08:50

Not sure what your question is.  Yes if there are 20,000 shares and the company decides on a 10 to 4 consolidation the number of shares becomes 8,000.  Your arithmetic is correct.  Is that all you are asking?

 

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By Chipette
28th May 2014 09:01

Hi

I am trying to keep proper records on a spreadsheet for future disposals and just want to check I am presenting this correctly. 

Thank you

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