Aurora Acquisition in an 8-K filing said it will restate financials in its most recent quarterly report to account for warrants as liabilities. The change comes on the heels of the SEC’s statement last month that blank-check firms should not account for warrants as equity assets, but instead should list the instruments on the liability side of the balance sheet and measure them at fair value with each subsequent report.
Scores of SPACs have announced the new accounting practices since the SEC’s April 12 statement.
Aurora is in a pending merger with homebuying platform Better HoldCo that reflects an implied equity value of approximately $6.9 billion and a post-money equity value of approximately $7.7 billion for the combined company. Read more.
