I recently obtained shares of Sylvamo Corp (SLVM) as a result of a spinoff from International Paper (IP). In the transaction history of the containing brokerage account there was no intermediate transaction - such as a dividend (from IP) and subsequent buy (of SLVM). It simply shows up as gaining shares of SLVM.
In my personal finance software (MoneyDance) there is no specific transaction type to accurately represent this. So I created the "dividend and buy" intermediate transactions.
Is there an alternative approach to this - should I just "add" x shares of SLVM with no connection to the spinoff, for example?
EDIT: More observations (I'm beginning to understand the accounting...)
The spinoff ratio IP is 11:1 ("receive 1 share of SLVM for every 11 shares of IP held")
The "purchase history" showing in brokerage account shows a complete history for SLVM dating back to 2018-06-13 for SLVM when I've never owned SLVM (until this spinoff). But not coincidently the IP purchase history covers the same dates.
Any fractional share amount (in SLVM) resulting from the spin-off calculation is truncated and the fractional shares converted to cash.
The part I'm still trying to figure out is how it's a zero-sum event if my IP share amount did not change and it's seems impossible to correlate a price drop to a spinoff.