AIG will restate more than four years of financial reports, slashing $2.7bn (£1.4bn) from its net...
AIG will restate more than four years of financial reports, slashing $2.7bn (£1.4bn) from its net worth, owing to improper accounting.
In a 10-page statement released this weekend, the insurer outlined a long list of misleading actions that forced it to delay the filing of its annual 10-K report for 2004 with the US Securities and Exchange Commission for a third time.
It now says it expects to file no later than 31 May.
The insurer violated several US accounting principles including deferring expenses or decreased reserves, both of which had the effect of boosting reported profits.
AIG also said several primary accounting entries were made in its books without supporting documentation on the orders of former senior managers.
The company blamed former executives for some of the problems, claiming "certain entries appear to have been made at the direction of certain former members of senior management without appropriate support."
