BusinessCompany NewsSEC to probe accounts at AOL Time Warner

SEC to probe accounts at AOL Time Warner

News of AOL Time Warner's first profits since its merger into the world's biggest media company, have been overshadowed by an investigation into its accounting practices.

The inquiry by chief financial watchdog the Securities & Exchange Commission, follows allegations made in the Washington Post regarding the way AOL booked its advertising revenue.

While it admitted the investigation, AOL Time Warner said all accounting had been done according to generally accepted acounting principles, and denied any wrongdoing.

Click here to read about AOL Time Warner’s $60bn goodwill charge

In its most recent financial statements the company showed a profit of $394m for the second quarter of 2002 compared to a net loss of $734m the previous year for the same time period.

In January, AOL TimeWarner was forced to record a charge of around $60bn (£41bn) in the first quarter of 2002 due to a new accounting rule.

The new US accounting rule on goodwill acquisitions – FAS 142 – effective from 1 January 2002, meant the company had to record the one-off hit following the $350bn merger of AOL and Time Warner.

AOL Time Warner is audited by Ernst & Young LLP.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor