The SEC Division of Corporation Finance staff and Acting Chief Accountant Paul Munter issued statements today on some of the basic, critical SPAC financial reporting, audit, corporate governance, and exchange listing considerations, which, in the aggregate, appear to be aimed at educating SPACs, their private company targets, and investors about the stringent requirements that accompany their unique journey to, and ongoing, public company status well before they decide to take the plunge. The relatively brief statements are a must-read for those who are unfamiliar with SPACs or the financial reporting and audit scheme that applies to the shell companies from the outset and the combined companies upon completion of the transaction.
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