The notoriously complex accounting rules that tripped up hundreds of SPACs in 2021 won’t get simplified anytime soon, U.S. accounting standard-setters said Wednesday.
The Financial Accounting Standards Board voted 5-2 to drop from its agenda a project to clean up more guidance governing how to distinguish liabilities from equity, including some of the issues that led special purpose acquisition company warrants to run afoul of U.S. accounting rules.
“This is a very complex area of accounting, but the complexity isn’t for complexity’s sake alone. The complexities are because these instruments are very complex,” FASB member Frederick Cannon said. “And ...
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