FMN Accounting

FMN - 2021/August, Seg 1 - Accounting and Valuation of SPACs

Special purpose acquisition companies, SPACs, also known as "blank check companies" raise money but are listed on an exchange before they even own any assets. Their goal is to acquire a privately held company within two years. These are both good enough reasons to be on the SEC's radar. The SEC not only looks closely at filings and disclosures by SPACs in an effort to protect the public interest, but also, in April 2021, issued new guidance on the treatment of SPAC warrants with neither previously issued proposals nor a comment period. This was an uncharacteristic move that caught financial professionals by surprise. Zac McGinnis, Managing Director at Riveron Consulting and Josh Schaeffer, director at Equity Methods, provide a more in-depth discussion on SPACs and their execution.

Learning Objectives:

  • Understand the new accounting treatment of SPAC warrants and its impact on financial statements;
  • Identify the differences between SPAC warrants and de-SPAC transactions;
  • Recognize some of the considerations with respect to financial statement restatement; and
  • Determine the difference between each of the three simulation models and best one to use for valuation.


Prerequisites/Advanced Preparation:

Work experience in financial reporting or accounting, or an introductory course in accounting.


Speakers / Authors:

Zac McGinnis is the Managing Director at Riveron Consulting. He has 20 years of global experience in accounting advisory and audit roles, including capital raising assistance, SPAC mergers, carve-out and pro forma financial statements, business combination and divestiture matters, fresh start accounting and reporting, IPO readiness, GAAP change and IFRS conversions, and audit assistance. Zac has served clients in a variety of industries, focused primarily in energy and including multinational publicly traded companies, private-equity portfolio companies, and privately-held institutions.

Josh Schaeffer is a director and practice leader for Equity Methods' valuation practice. He leads the delivery of valuation and advisory services related to complex securities. Besides complex securities, Josh brings his academic and practical experience in economics, finance, and statistics to a range of other challenges. One is helping companies assess pay equity. Another is determining median employee compensation for purposes of CEO pay ratio calculation. He enjoys solving unique problems and mentors employees who share this aptitude. He holds a BA in economics and math from the University of Rochester and a PhD and MBA in finance from the University of Chicago Booth School of Business.

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Price (USD)

Standard: $69.90

Details

Course Code : FMN1408-FM

Release Date : 08/09/2021
Expire Date : 03/14/2023
Credits :
CPE 2.00
QAS 2.00

Course Level : Update
Length : 1hr 40min
Course Type : QAS Self-Study

Passing Grade : 70%
Format Type : eLearning
Mobile Compatible
Field Of Study : Accounting

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