SPAC Warrant Accounting Woes Could Get Rulemaker Fix

U.S. accounting rulemakers are examining parts of complex accounting rules that recently tripped up hundreds of special purpose acquisition companies and businesses that went public via merger with blank-check companies.

The Financial Accounting Standards Board is in the early stages simplifying the guidance in ASC 480, which covers distinguishing liabilities from equity, and ASC 815, which covers derivatives. The board wants to align what’s called the indexation models in the two sets of rules, said FASB technical director Hillary Salo at a University of Southern California financial reporting conference on Friday.

“We didn’t add this because of ...