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AIG to Restate Four Years of Financial Statements

American International Group Inc. (AIG) plans to restate more than four years of financial statements to correct accounting errors and acknowledges that in some cases,...
May 3, 2005

American International Group Inc. (AIG) plans to restate more than four years of financial statements to correct accounting errors and acknowledges that in some cases, former executives failed to follow internal controls over financial reporting.  The company estimates that the restatement will reduce the company's net worth by 3.3 percent. 

The statement came at the beginning of May, after AIG again missed a deadline for filing its annual report for 2004 to the Securities and Exchange Commission. The disclosures in the statement worked on by AIG officials and outside auditors and lawyers involve accounting issues in addition to those acknowledged by the company on March 30, when it missed its second deadline for filing the annual report.  In the recent statement, AIG said that the restatement would correct errors in previous accounting for improper or inappropriate transactions or entries that appear to have been made to improve the appearance of the company's results to the financial community.  The statement acknowledges that some of these transactions or entries may have misled the company's management, its regulators and its independent auditors.

AIG Raises Estimate of Accounting Errors to $2.7 Billion (Bloomberg Business News 5/2/05)

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