By Vinayak Pai V.
Chartered Accountant
A. KEY RECENT UPDATES1. SEC – ENHANCED DISCLOSURES FOR SPACs AND SHELL COMPANIESOn 30th March 2022, the US Securities and Exchange Commission (SEC) proposed
new rules to enhance disclosure and investor protection in IPOs by special purpose acquisition companies (SPACs) and in business combination transactions involving shell companies (such as SPACs and private operating companies). The proposals, inter-alia, include additional disclosures about SPAC sponsors, conflicts of interest and sources of dilution. Additional disclosures are required regarding business combination transactions between SPACs and private operating companies, including disclosures relating to the fairness of the transactions. [https://www.sec.gov/rules/proposed/2022/33-11048.pdf]
2. PCAOB - KEY CONSIDERATIONS FOR AUDITORS RELATED TO THE RUSSIAN INVASION OF UKRAINEOn 31st March, 2022, the Public Company Accounting Oversight Board (PCAOB) released a staff Spotlight document,
Auditing Considerations Related to the Invasion of Ukraine, that highlights important considerations for auditors of issuers and broker-dealers in conducting audits in the current evolving geo-political environment. It covers a range of audit-related matters, including identifying and assessing risks, planning, and performing audit procedures, possible illegal acts, reviews of interim financial information, and acceptance and continuance of c
