American International Group has admitted that erroneous accounting is expected to reduce its book value by £890m, approximately 2% of shareholders funds.
The insurer is already facing investigations from SEC, New York state attorney general Eliot Spitzer and the justice department about possible accounting irregularities.
William Wilt, an analyst with Morgan Stanley, told the Financial Times that the ‘depth and breadth of troubles and apparent lack of accounting controls’ was ‘alarming’.
AIG said that an internal review had revealed that certain transaction documentation was ‘improper’ and that as there was a ‘lack of evidence of risk transfer’ the transactions should not have been recorded as insurance.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements