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The Consolidation and Share Split buttons are used to store holding details prior to editing the holding to reflect a share split or consolidation. This is essential if dividends have been imported but is also useful for non-imported dividends. Click the button and enter the date. IRIS takes a (hidden) copy of the shareholding information as it is before the consolidation/share split. The entire holding can then be edited so that it now reflects the new position. Dividends prior to the share split/consolidation date will be computed or reported using the hidden copy that has been stored. Later dividends are computer or reported by reference to the current holding.
The consolidation and share split screens are the same.
IRIS does not provide computations for consolidations or share splits and the optional Dividend Service does not contain information relating to this type of event. This feature is essential when using the optional Dividend Service used to import dividend information. It is also used for non-imported dividends to ensure the correct holding is printed on schedules of data. The Consolidation and Share Split buttons records the holding details as they are before editing the holding and events to adjust them for the consolidation or share split. The recorded holding is used to ensure any existing imported dividends remain unchanged even though the holding has been revised for capital gains purposes. The recorded holding is also used for non-imported dividends to print the correct holding on the report.
Mr X buys 800 XYZ Ltd shares on 1/1/1995 and another 200 on 1/1/1996.
XYZ Ltd pay a dividend of 5p/share on 1/9/2000 and 8p/share on 1/3/2001.
There is a consolidation on 1/1/2001 of one share for every two held.
The dividend at 1/9/2000 should be £50 (1,000 x 5p). The dividend at 1/3/2001 should be £40 (500 x 8p)
The consolidation is achieved by importing or entering all dividends prior to the consolidation date, entering a consolidation date on the screen above and then editing the original holding entered (reduce 1/1/95 to 400 shares and 1/1/96 to 100 shares).
If a consolidation or share split date is not entered non-imported dividends will still be correctly shown on the return and computation but the wrong holding will be printed on the schedules of data. Imported dividends will not be correct on the return, computation or schedules of data.
Please note that once a date of consolidation or share split date has been entered it cannot be edited or removed.