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Regular Member
 
Group: Forum Members
Last Login: 30/03/2011 10:00:08 PM
Posts: 38,
Visits: 178
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A stapled security such as Macquarie Infrastructure - MIG comprises three separate assets - MIT(1), MIT(11) and MIGIL. When recording these, the cost base is broken up into three separate components.
The problem I have, is that when revaluing this asset, I have to split the current price across these three assets. As you would appreciate this is a time consuming process, if you have a number of stapled security assets.
Because I have recorded them as MIG - MIT(1), MIG - MIT(11) and MIG - MIGIL, I can't apply the current price of MIG against them, unless I break the components down.
Do you know of any way to overcome this problem?
Regards
John
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MySF Administrator
Group: Administrators
Last Login: 4/11/2010 3:24:01 PM
Posts: 464,
Visits: 633
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Unfortunately there is no simple way around this problem. The three securities need to be kept separate and unfortunately the market value of the three in total needs to be split back into its components.
Regards,
MySF
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Junior Member
Group: Forum Members
Last Login: 2/02/2008 12:39:46 PM
Posts: 2,
Visits: 7
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There is a way around your problem & this is the method that I have used
It works because valuations are only used to keep track of the market value of your share but they are not financial transactions as such.
when purchasing a stapled security such as MIG it should be entered into MySf as purchase of the number of shares at zero cost. This enters MIG into the Asset Register & it can then be revalued to current market value whenever you choose.
The separate assets such as MIT(1) etc can then be entered as purchases at their respective cost bases. The correct cost base for each asset is established correctly & total cost of MIG is credited to your Bank Account.
After entering the individual assets they should then be revalued to Zero. By this method the correct market value for MIG is recorded & it is not necessary to calulate the market value of each asset.
If at some time you add to your purchase of MIG you will need to repeat the above procedure.
When you finally sell MIG enter the sale price of MIG at zero (this will remove it from the Asset Register) & then enter the sale of each asset that makes up MIG at its proportion of the sale price & correct Capital Gains will be calculated.
I hope that this helps
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MySF Administrator
Group: Administrators
Last Login: 4/11/2010 3:24:01 PM
Posts: 464,
Visits: 633
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The approach described above is a good idea and will produce the correct results.
Regards,
MySF
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