Verizon/Vodafone
« on: January 22, 2015, 02:24:16 PM »
How do I account for the Verizon/Vodafone spinoff in IAM?

Re: Verizon/Vodafone
« Reply #1 on: January 22, 2015, 02:27:41 PM »
Hi Linda:

You'll need the details as issued to you from VZ/VOD that shows the proper allocation ratios, market prices, and effective dates.  Once you have that information, you can use the IAM global transaction function for the proper entry.

Matt

Re: Verizon/Vodafone
« Reply #2 on: February 06, 2015, 12:37:52 PM »
I queried VOD investor relations specifically about - % of original cost basis retained by issuer shares (VOD) and - % of original cost basis allocated to spin-off shares (VZ) which I need to enter into IAM and received the following response.  Can you help me with this calculation?  Unfortunately, I am not a mathematician.  I have the allocation ratios, market prices and effective dates.

"You generally will not recognise gain or loss on the receipt of New Vodafone shares pursuant to the share consolidation and should generally have the same holding period and total aggregate tax basis in the New Vodafone shares received as you had in your existing shares, less any basis in any fractional entitlement received in cash. Therefore the cost basis per share in the new shares would generally be higher than those in the original shares. More detail can be found here.  http://www.vodafone.com/content/dam/group/investors/downloads/vzw/VGPLc-form8937-Final03-21-2014.pdf

  The base cost in your Verizon shares received is the relevant market value of the Verizon shares at the point the Scheme became effective, this is $48.115.


Please see the attached for more information

http://www.vodafone.com/content/dam/group/investors/downloads/vzw/Information_for_US_shareholders_and_ADR_holders.pdf"