Financial reporting

The more frequently companies report their earnings, the less likely investors are to make knee-jerk investment decisions, according to recent research.

Large companies are bolstering their adjusted earnings per share by excluding items such as litigation expenses and amortization of intangible assets from their net income.

The agency is adding new financial reporting and accounting requirements for SPAC deals.

Like most financial instruments, special purpose acquisition companies present risks and rewards, and require due diligence from accounting firms to help avoid landmines.

“The primary drawback of fewer hedge fund filings is lack of clarity around crowding risk,” strategists from the firm write.

Some unresolved issues haven’t received as much attention as those related to federal securities laws.