On April 12, 2021, the Acting Director of the SEC’s Division of Corporation Finance, John Coates, and Acting Chief Accountant of the SEC, Paul Munter, released a statement on accounting and reporting considerations for warrants issued by SPACs.
QuantumScape is announcing that as a result of recent guidance provided by the SEC on April 12, 2021 regarding the accounting and reporting of warrants issued by SPACs, it will restate its consolidated financial statements as of and for the year ended December 31, 2020 to change the accounting treatment of its public and private placement warrants.
The recent statement by the Staff of the SEC (the Staff Statement) will likely impact almost every SPAC or post-de-SPAC entity with warrants in its structure
SPAC mania has come to a screeching halt. Just last month, special purpose acquisition companies celebrated a head-turning milestone by breaking their 2020 issuance record in just three-month’s time.
The SEC’s recent guidance on special purpose acquisition companies has had a “chilling” effect on the market, the firms say.
Some special-purpose acquisition companies have improperly accounted for warrants sold or given to investors, securities regulators said Monday, stepping up scrutiny of the popular vehicles.
In a recent statement, Acting Chief Accountant Paul Munter highlighted a number of important financial reporting considerations for SPACs.