Blank-cheque companies restate accounts after US watchdog’s warnings | Financial Times
Revisions to corporate financial reports rose 289% in 2021, with increase led by Spacs
✒ Accounting restatements nearly quadrupled in the US last year, with SPACs accounted for 77% of the 1,470 restatements reported to the SEC.
These restatements were mainly driven by SEC’s two concerns about how certain warrants (giving rights to investors to buy additional shares) and redeemable shares should be accounted for.
Not only were there an enormous number a restatements, but a disproportionate share (62%) of them were so significant that the companies had to issue a new set of financial statements rather than simply revise previous periods in a new report.