A warning from the Securities and Exchange Commission about accounting for the warrants used by special purpose acquisition companies has prompted hundreds of them to issue financial restatements. SPACs, also known as blank-check companies, have become an increasingly popular way for companies to go public by merging a privately held […]
SPAC
Pervasive SPAC Accounting Error Prompts Mass Restatements
An accounting error that came to light in the spring forced hundreds of blank-check companies to flag financial statement mistakes at levels not seen in more than a decade. More than 340 special purpose acquisition companies in the past three months issued corrections, or restatements, of prior financial statements—quadruple the […]