The Share Capital Reconciliation, Statutory Information and Dividend Reconciliation templates are all connected in some way, and you may need to enter information on each of these templates in any given period.
The Share Capital Reconciliation
The Share Capital Reconciliation is found in the equity section of your working papers' working screen and is where you can enter details about the share capital structure of the company.
You can use the # functionality (A) to pull in the share capital nominal code(s) to be reconciled.
Selecting the # will present the following screen. Simply select which account codes that you’d like to reconcile on the left hand side. Once selected, the account will move to the right hand side. Once all relevant accounts are selected, click save at the bottom of the screen.
Has payment been received from the shareholders in relation to the class of shares?
If so, select the paid check box. This will pull through to the Note - Called up share capital & reserves if you are using Silverfin for accounts production.
Class of share [MANDATORY FIELD] (C)
Enter the class of share here. Each class of share will pull through as an option in the statutory information template so that shares by shareholder can be recorded.
Ordinary/Preference share (D)
Select whether the shares are ordinary/preference shares. If the company has preference shares in issue, you’ll need tto provide further details in respect of these shares (see below).
The default currency is the currency of the file (see the 'Edit Client' screen for a reminder of what this is). If the currency is changed from the default, the Note - Called up share capital & reserves will be updated to reflect this.
If ' preference' i shares are selected, you’ll also need to select a detail option from the drop down list to indicate the basic terms attached to the preference shares.. This will pull through to the Note - Called up share capital & reserves.
Additional share details (G-K)
Items G-K allow you to enter further details for each class of share.
Details of the dividend % (if preference shares) will populate the Called up share capital and reserves note in accounts production.
Issued number (I) and Nominal value per share (J) are used to calculate the total value of the shares which should reconcile back to the figures in your trial balance. The total value of shares is also reconciled to the same figures on the statutory information template.
Reconciliation of share issues, repurchases and restructures
If there have been any changes to the share capital structure in the period, you can summarize these within the Shares issues, repurchase and restructures table. Remember that the carried forward number for each class of shares should be equal to the issued number of shares entered in the table above.
The Statutory Information Template (Directors, secretaries and shareholders)
Use the first table in the Statutory Information template to enter details about the directors, shareholders and company secretary.
If you have set up your Admin sync, you can use the information from Companies House to help you populate key Director information. Read this article to find out more.
If you’re not using an admin sync, details can be entered manually.
The title, first name and surname fields can be used to enter each relevant individual's name, however, only the first name and surname fields are required. If you’re using accounts production, the display name field shows how each individual’s name will appear in the company’s financial statements if they are designated a director or company secretary. The field automatically concatenates the three name fields by default but this can be overridden to display the names however you or your client would like.
Designating an individual a director or secretary will populate the financial statements and will require you to enter further details to the right of the table regarding when each individual was appointed to or resigned (if applicable) from their position.
Tip: If you need to enter details of a corporate shareholder, we recommend that you enter the company name in the first name field and ‘NA’ in the surname field. Then remove the NA from the end of the display name. We’re working on a better way to handle this, watch this space!
Designating an individual as a shareholder will require you to enter information about their shareholding(s). The options within the drop down box for type of shares are pulled from the Share Capital Reconciliation that we saw earlier (see above), so be sure to populate this first before trying to select a type of shares. If a shareholder holds more than one type of shares, select the multiple share types? button. This will allow you to select multiple share types on subsequent lines, although you will only be able to select each type once for a particular individual.
If there have been no changes to the shares in issue and the % of shares held by each shareholder has not changed during the period, you should enter the number of shares for each shareholder in the amounts of shares column.
If there have been transactions at the shareholder level in the period you’re working in, you will need to select the details of share transactions in the period option below the first table.
This table will allow you to enter details of shares acquired and disposed of by each shareholder for each class of shares. When this table is enabled, the amount of shares column in the table above will be automatically populated with the balance of shares carried forward at the period end per this translation detail table.
Remember, if there have been transactions at the shareholder level and the company has paid dividends in the period, it is important that details of these transactions are recorded to allow Silverfin to apportion dividends correctly.
Please note, if you're copying data over from a previous period, this must be done at a Client level. It is not possible to copy data within the reconciliation itself. If you would like to copy data from a previous period you should navigate to the Company Overview page and navigate to 'Actions '-> Copy template data & select "Copy shareholder, director, and general period data"
Below the details of share transactions in the period table, shareholdings are summarized by class and the number of shares in issue is reconciled back to the share capital reconciliation template. These tables are read only and are for information purposes only.
Dividend Reconciliation Template
This reconciliation is the account template that you assign to the dividend account codes. To do this, open up the relevant account code in working papers. If the dividends reconciliation template isn’t already set, click edit at the top right hand side of the template and use the drop down box to select Dividend Reconciliation.
For each dividend paid by the company in the period, enter the payment date and select the type of shares. You can only enter a date that falls within the period you’re working in and the type of shares options are pulled from the Share Capital Reconciliation, so be sure to have set this up correctly before populating the dividend template.
The number of shares column is populated via the statutory information template. Again, remember that if there have been changes to the number of shares during the period, you will need to record this within the statutory information template.
The total dividend should be entered into the dividend amount column on the right hand side. Doing this will trigger a calculation in the rate column (total dividend amount / No. of shares).
You have the option to attach any relevant supporting documentation by clicking on the paper clip icon.
Below the fist table you will find a read only table that summarizes the dividends by share type and shareholder.
What if the dividend has been waived by one/some/all of the recipients?
Don't worry, we cater for that! Above the first table in the template, select the Include dividend waivers option,
When selected, this will add 3 additional columns to the table which shows the total dividends paid per share type:
Select the tick box pertaining to the individual who elected to waive the dividends and enter the number of shares for which dividends were waived. The 'Nbr. of shares (after waiver)' will calculate automatically based on the number of shares the individual owns (per the 'Share capital reconciliation' template) less the 'Nbr. of shares waived'.
Dividend summary (for dividend documents)
The details entered on the above 3 templates will feed into the 'Dividends summary' template .
This template is especially useful in providing you with oversight if the company has multiple dividends codes, as it gives the details of the different dividends that made up the total dividends paid during the year.
The only input required on this template is to pull in the relevant dividends nominal code/s using the # functionality.
The details entered on all the above templates will fully automate the details in the Dividend Board Minutes and Dividend Vouchers documents, eliminating the need to manually complete these documents. These can be found in the 'Documents' folder.
If these aren't showing as automatic in your Documents section, simply hit Actions > New Text and you will be able to choose the documents you would like to add.
The board meeting minutes and dividend vouchers are populated automatically with reference to the statutory information template, dividend reconciliation and share capital reconciliation.
Within the board minutes, you simply need to enter the persons present at the meeting and select the director approving the minutes from the drop down box at the foot of the document.
Within the dividend vouchers, all you need to do is select whether the particular dividend is an interim or final dividend, enter the shareholders address and select the signatory of the voucher from the drop down box.
If you have any questions about anything raised in this article or notice that something needs updating, please feel free to reach out to our wonderful customer support team who are always on hand to help.