At the end of last week, the SEC approved the PCAOB's updated standards for audits that involve multiple auditing firms. SEC Chair Gary Gensler said that the amended standards.
Staff Posts Guidance On Accounting For Warrants Issued In SPAC Transactions - Accounting and Audit mondaq.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mondaq.com Daily Mail and Mail on Sunday newspapers.
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Warrants are frequently issued in connection with the formation and initial registered offerings of SPACs, but apparently there have been some problems with accounting for some of these warrants, or at least, so it appears from this Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”) from Acting Corp Fin Director John Coates and Acting Chief Accountant Paul Munter. The Statement is intended to “highlight the potential accounting implications of certain terms that may be common in warrants included in SPAC transactions” and to discuss what needs to be done if this Statement leads a company and its auditors to determine there is an error in any previously filed financial statements. The primary issue identified in the Statement is whether these warrants should be classified as equity or liabilities, which depends largely on the specific
The SPAC crackdown hasn’t truly begun, but the SEC is obviously considering it MarketWatch 1 hr ago
THERESE POLETTI S TECH TALES
The Securities and Exchange Commission is obviously looking at the explosion of blank-check companies on Wall Street, but isn’t totally cracking down on them yet.
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Seeking to anticipate any potential issues that may result from the current mania for special-purpose acquisition companies, or SPACs, on Wall Street, the Securities and Exchange Commission issued a staff statement last week to remind companies of the rules. That warning followed disclosures of multiple investigations into specific SPACs, which amped up thoughts that the regulatory agency is looking to push back against the newly popular funding mechanisms.