SPAC accounting issues Archives

Terms of a typical SPAC IPO includes a feature that allows the sale of additional equity securities by the SPAC...

As part of SPAC's formation, the newly formed entity issues its founders

Many public offering transactions include a feature that allows the sale...

Entity’s time to identify a suitable target is limited. If SPAC is unable to complete a merger within 24 months

SPAC financial close includes recording relevant entries in entity’s accounting system as well as preparation...

Some SPACs signed a forward purchase agreement (FPA), an arrangement that obligates SPAC to issue to its sponsor

If SPAC's management identify an appropriate target, it must then seek a shareholder approval the proposed...

As part of the IPO, SPACs issue its founders warrants, i.e., equity-linked instruments that give SPAC’s founders...