The whole point of a SPAC is to find a promising company, acquire it, and take a shortcut to a public listing.
Those are the logistics. Then comes accounting for such transactions. Like many things involving financial reporting in the fast-paced special purpose acquisition company market, it’s complicated—and regulators are paying attention.
The Securities and Exchange Commission is increasingly fielding questions from accountants about how to navigate the nuances of business combinations accounting for SPACs, according to SEC staff accountants. Earlier this year, the agency’s chief accountant highlighted it as one of several complex issues in SPAC accounting.
The Wall ...