The blank-check companies that were Wall Street darlings, and then regulator targets, are facing yet another round of accounting headaches, Bloomberg reports.
Four SPACs in the past two weeks have flagged errors in accounting for certain underwriter incentives serious enough to require them to restate their past financial statements. Given the similarity of the deals and the complexity of the accounting, more could be on the way.
“It’s something many of the SPACs have already done, and it’s also something that’s fairly material to their financial statements, so they’ll have to make the correction,” said Derryck Coleman, director of research at Audit Analytics.
The pervasiveness of the errors, however, won’t be on the same level as widespread restatements that stymied hundreds of SPACs not once, but twice in 2021. Read more.
