In a message dated 9/18/2007 4:17:52 P.M. Eastern Daylight Time,
IraS1@aol.com writes:
In a message dated 9/18/2007 4:03:43 P.M. Eastern Daylight Time,
gmoots2@bivio.com writes:
Am
looking at the NAIC Accounting Manual from
March 1991, page 74. It
indicates the six steps for
a merger are relative simple.
However,
this manual is precomputer and tells how to
keep club books on a manual
(paper) basis.
I am only two months into using Bivio.
Can Bivio
take care of a merger? Are mergers still viable
and
"relative simple"?
Bivio handles mergers just fine. Unfortunately, they are not always
simple. You need to review the documentation provided by the company to know
how to enter the merger. Generally, non-taxable and fully taxable mergers are
easiest. The first uses the merger button; the second is a sale and purchase.
However, recently a new variation has become very popular, the stock plus cash
merger. It's best to ask here or on the BI club-treasurers listserv if you
have a specific merger to enter and one of the experts will provide
guidance.
Ira Smilovitz
Looking at the header of your message, I wonder -- are you talking about a
corporate merger or an investment club merger? My earlier response was related
to corporate mergers, not investment club mergers. You should not merge
investment clubs. There are many tax problems involved and none of the
investment club accounting software will handle them correctly. The correct
procedure is for one of the clubs to disband and then join the remaining club
using cash to fund their investments.
Ira Smilovitz