SEC Updates Accounting, Audit Guidance for Blank Check Mergers

Private businesses in line to merge with a blank check company in order to go public must provide audited financial statements that meet US audit standards in proxy statements and registration statements , according to SEC guidance released on Friday.

The Securities and Exchange Commission updated its staff guidance to address financial reporting and audit matters resulting from 2024 rules that aligned reporting for special purpose acquisition companies with those of traditional public offerings. SPACs are shell companies that aim to raise money to take an operating company public through a merger.

Updates to the commission’s financial reporting manual also ...