I had a feeling that I had missed something. I'm not a MEP holder (just answering because I have looked into this topic previously), so I'd honestly forgotten all about the Demetallica shares, which is an issue as it makes a difference in how you work calculate things. Pretty big oversight I know, I shouldn't have been doing figures while watching the cricket.
The ATO page in question has an example at the bottom of the page (
Example 28: Script for script rollover) which outlines how to attribute cost base when you receive shares of different value. It uses capital proceeds and capital gain based on the value of the new shares to calculate a cost base for each, so it cant really be finalized until the transaction is completed.
The key takeaway is that it is still attributing the cost base of your original holding, with the example showing how to properly to split it between the new shares. MEP->ADN/Demetallica is a little more complicated due to the share ratios, but in the end its still just a split of your original cost base.
I've done the calculation for interest sake by:
1. Using assumed numbers for ADN (0.215) and Demetallica (0.002)
2. Calculating capital proceeds using those assumed number multiplied out using the distribution ratio ADN 1.15* 0.215 and Demetallica 20* 0.002
3. Using the calculation from the ATO example to allocate a new cost base (Picture below with formula)
4. Dividing the newly found cost base by the distribution ratio to confirm the new single share cost base
5.To confirm numbers multiplied the number of new shares by there new cost base, then added them together to confirm the original $19k
Showing ATO calculation/formula
I'm sure there is an easier way to do this, but this worked and I think it shows the process followed ok. If anyone sees any mistakes, just let me know.
Its my assumption that any costs incurred can be attributed the same as with brokerage fees on a trade, but its not something I have looked into in depth.
(20min delay)