Why this is mistaken
Allocate the residual to whichever security is convenient. Use supported relative fair values or a justified residual method and make the allocations reconcile to total proceeds.
Where to watch
When this mistake may appear
- A balanced total equity amount appears to support the transaction.
Check your work
Your work may contain this mistake if:
- Posts the event without reconciling class rights, share counts, dates, and source-specific equity balances.