BusinessCompany NewsAOL admits accounting inacuracies

AOL admits accounting inacuracies

AOL Time Warner has admitted accounting problems saying it may have overstated its revenues.

Link: Law suit against AOL

In its statement to certify its financial results following the Sarbanes-Oxley Act, the media giant said it found three transactions that were inappropriately stated as revenues ‘within the past 10 days.

It said: ‘The advertising and commerce revenues recognised in connection with these three transactions totalled approximately $49m (£31.8m) occurring over a period of six quarters.’

AOL added it is reviewing transactions involving its advertising and commerce division. And added it may restate its financial results if it finds any transactions that were ‘not appropriate.’

Chief financial officer Wayne Pace said: ‘I am committed to completing our internal review and resolving those questions on a thorough and timely basis, and we are moving forward to implement additional internal controls at AOL.’

AOL, whose auditors are Ernst & Young, is already having its accounts probed by federal investigators.

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