The discovery has meant that the group’s profits have been inflated by nearly $100m since September 2000. The company was undertaking the review at a time when its online advertising practices are being investigated by the Securities and Exchange Commission.
The biggest part of the restatement came from the third quarter of 2000, with revenues from that period being inflated by $66m. The company had claimed a growth rate in advertising income of 80% during this period, when in fact it should have been closer to 60%.
AOL said the overstatement represented only 1% of the company’s total revenues and 2% of earnings before interest, taxes, depreciation and amortisation, but was taking the matter very seriously.
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