Processing the Westfield Restructure in Reckon Accounts Personal Range

Legacy KB ID: 5243

Question

How do I process the Westfield restructure in my Reckon Accounts Personal range?

Answer

Care:  users should consult the material sent them by Westfield and where there are any questions you should refer them to your Accountant.

Westfield have information and guides at:

For Westfield Group (WDC):

https://www.westfieldcorp.com/investors/taxation-information/

for Westfield Retail Trust (WRT):

https://www.scentregroup.com/investors/taxation-information/

This guide should be treated as a mere example.  The numbers used here may not be correct for your purposes.

Background

The Westfield Group (WDC) and Westfield Retail Trust (WRT), which included a number of other trusts that were stapled to these shares, underwent a restructure on 30/6/2014 which has resulted in the formation of two new entities:

·         Westfield Corporation (WFD) and

·         Scentre Group (SCG).

Shareholders in WDC will receive 1 share in WFD for every WDC share they own and 1.246 shares in SCG.

Shareholders in WRT will receive 0.918 SCG shares for every WRT share and $0.28530 cash.

Handling the restructure in Reckon Accounts Personal range

WDC

1.    Rename Westfield Group to Westfield Corporation

a.    Enter Transaction > Corporate Name Change

2.    Change Code from WDC to WFD

a.    Right-click Westfield Corporation > Edit Security

b.    In the Symbol field, change WDC to WFD

c.    Click OK to copy quotes

3.    Create the new Scentre Group from Westfield Corporation

a.    Enter Transaction > Corporate Securities Spinoff

b.    Security name:  Westfield Corporation

c.    New Company: Scentre Group

d.    New shares issued (per old share): 1.246

e.    Cost per old share – refer to your documentation

(eg: original $10.00 cost base translates to $6.362)

f.     Cost per new share – refer to your documentation

(eg: on an original WDC cost base of $10.00, it will be $2.92)

Westfield Retail Trust (WRT)

Receive Capital Distribution

1.    Enter Transaction > Return of Capital

2.    In the Amount field, enter: 0.2853 x your number of WRT shares

a.    Eg: for 1,000 shares, enter $285.30.

Convert WRT to SCG

If you are converting only WRT shares to SCG

1.    Rename Westfield Retail Trust to Scentre Group

Enter Transaction > Corporate Name Change

2.    Change Code from WRT to SCG

a.    Right-click Westfield Retail Trust > Edit Security

b.    In the Symbol field, change WRT to SCG

c.    Click OK to copy quotes

3.    Adjust the share

a.    Calculate your new number of shares

0.918 x your number of WRT shares

(check your documentation – the number of new shares may have been calculated for you)

b.    Enter Transaction > Adjust Share Balance

c.    Enter the Date of the Adjustment – 30/06/2015

d.    Security name:  Scentre Group

e.    Number of shares: number number calculated at 3a.

If you have already acquired SCG shares from your WDC holdings

1.    Entre Transactions > Corporate Acquisition (stock for stock)

2.    Company Acquired is Westfield Retail Trust

3.    Acquiring company is Scentre Group

4.    New shares issued: refer to your documentation

Eg: 0.918 x your number of WRT shares

for 1,000 shares, enter 918.

5.    Price per share …:  refer to your documentation

Eg: 0.9921875 x your cost base for WRT shares

Eg:  if shares acquired at $3.20, then 0.9921875 x 3.20 = 3.175

Need more help?

Ask the Reckon Community at: https://community.reckon.com/

Or Log a Support Ticket: https://www.reckon.com/au/support/