AIG: The Problem of Disclosures
Code : GOV0027C
Region : US
American International Group (AIG) was one of the world’s largest international insurance and financial services companies with operations in more than 130 countries. After the announcement of its financial results for 2004-05, AIG was charged by the US regulators for indulging in manipulative accounting from the year 2001. It was alleged that AIG along with its subsidiaries, had resorted to creative accounting to give a false picture of its clients’ earnings as well as that of its own. After the complaints, AIG conducted an internal review of its accounts and came up with a restatement on May 31, 2005. The case discusses the important manipulative deals of AIG with its clients and its own subsidiaries, highlighting the aberrations from the US GAAP in each arrangement.
|For Case Books
Click Here >>
For Case eBooks Click Here >>
Keywords :Corporate Governance Case Study, AIG, Insurance sector, corporate governance, regulators, SEC, insurance accounting, manipulative accounting, subsidiary accounting, US GAAP, accounting frauds, financial services sector, shareholder value
» About AIG
» The deal with Brightpoint
» The deal with General Reinsurance Corporation
» Other accounting irregularities
Related Case Studies
- » Corporate America and Sarbanes-Oxley Act: Costs Vs. Benefits
- » Corporate Governance Problems at Seibu, Japan's Major Private Railway: Board to be Blamed?
- » American Institute of Certified Public Accountants (AICPA): A Decade of Challenge and Change
- » Volkswagen's Ferdinand Piëch's Porsche Connections: The Clash of Interests?
- » Indian BPO's Scandals and the Aftermath
Case Studies on Parmalat
Recently Bought Case Studies