SHARES

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can someone please help me before I have a nervous breakdown! I really can't get to grips with the treatment of shares!!! I am doing a question supplied by my tutor and I'm fine until I get to after the 1985 FA pool! What happens when shares are bought and sold after this period, then the remaining shares are sold??? I need help quick please!!!!<BR><BR>Ta V Much<BR><BR>J

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    SHARES

    The S.104 holding (85 pool) was frozen as at 5.4.98. The cost and indexed cost at that date are fixed. If some are sold you simply pro rata the cost.<BR><BR>Shares acquires post 5.4.98 are not pooled they are treated like any asset and are separately acquired and disposed of. There is no weighted average, like the 85 pool.<BR><BR>You know how many were bought, when, and for how much. When some are sold you have to apply a series of rules to identify which ones were sold. The rules are:<BR><BR>first,those purchased on the same day as the sale<BR>then, those purchased in the 30 days AFTER the sale<BR>then apply LIFO rules, just like Intermediate stock valuation<BR>then those purchased pre 6.4.98<BR><BR><BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    SHARES

    Thanks for your help Bryan! Still really struggling and just hope that it might stick in my head soon!!!<BR><BR><BR>Thanks again

Categories

Privacy Policy