In 2021, there has been a surge of financial restatements after the SEC issued guidance that requires special purpose acquisition companies (SPACs) to report warrants as liabilities, not equity. These restatements were related to a financial reporting technicality, rather than problems with a particular company or transaction. But some restatements signal mismanagement, weak internal controls and even fraud. Regardless of the cause, restatements can be time consuming and costly. We can help your in-house accounting personnel manage the restatement process, communicate with stakeholders in an effective, reassuring manner and take any needed corrective actions.
