AIG Accounting Scandal
AIG Accounting Scandal
Contents
1.0 Introduction ………………………………………………. 2
1.1 Overview of AIG …………………………………….. 2 2.0 Scandal Methodology Used by the Company………… 3 2.1 Accounting Practices Errors ……………………….. 3 3.1 Ways to Hide Accounting Improprieties ………………. 4 4.1 Who the scandal effected ………………………………. 7 5.1 Recommendations ………………………………………. 8 6.1 Conclusions ………………………………………………. 9 7.1 References ………………………………………………. 10
1.1 Overview of AIG
AIG is the world 's biggest Insurance association, with more than 88 million clients around the globe. AIG are pioneers in property setback protection, life coverage and retirement administrations, contract protection, and airplane renting. However, AIG are more than the total of its parts.
AIG was founded by, American Cornelius Vander Starr in 1919 as a general insurance agency, American Asiatic Underwriters (AAU), in Shanghai, China. Business developed quickly, and after two years, a Life Coverage Operation was shaped. By the late 1920s, AAU had branches all through China and Southeast Asia, including the Philippines, Indonesia, and Malaysia. In 1926, Mr. Starr opened his first office in the United States, American International Underwriters Corporation (AIU). In 1939, Mr. Starr moved his central station from Shanghai, China, to New York City. The company went public in 1969.
In the 1980s, AIG kept extending its market dissemination and overall system by offering an extensive variety of specific items, including pollution liability and political risk. (Cunningham.L, 2013)
In 1984, AIG listed its shares on the New York Stock Exchange (NYSE). Throughout the 1990s, AIG created new source of income through various ventures, including the obtaining of International Lease Finance Corporation (ILFC), a supplier of rented air ship to the aerial shuttle industry. The early 2000s saw a time of development as AIG gained American General
Contents
1.0 Introduction ………………………………………………. 2
1.1 Overview of AIG …………………………………….. 2 2.0 Scandal Methodology Used by the Company………… 3 2.1 Accounting Practices Errors ……………………….. 3 3.1 Ways to Hide Accounting Improprieties ………………. 4 4.1 Who the scandal effected ………………………………. 7 5.1 Recommendations ………………………………………. 8 6.1 Conclusions ………………………………………………. 9 7.1 References ………………………………………………. 10
1.1 Overview of AIG
AIG is the world 's biggest Insurance association, with more than 88 million clients around the globe. AIG are pioneers in property setback protection, life coverage and retirement administrations, contract protection, and airplane renting. However, AIG are more than the total of its parts.
AIG was founded by, American Cornelius Vander Starr in 1919 as a general insurance agency, American Asiatic Underwriters (AAU), in Shanghai, China. Business developed quickly, and after two years, a Life Coverage Operation was shaped. By the late 1920s, AAU had branches all through China and Southeast Asia, including the Philippines, Indonesia, and Malaysia. In 1926, Mr. Starr opened his first office in the United States, American International Underwriters Corporation (AIU). In 1939, Mr. Starr moved his central station from Shanghai, China, to New York City. The company went public in 1969.
In the 1980s, AIG kept extending its market dissemination and overall system by offering an extensive variety of specific items, including pollution liability and political risk. (Cunningham.L, 2013)
In 1984, AIG listed its shares on the New York Stock Exchange (NYSE). Throughout the 1990s, AIG created new source of income through various ventures, including the obtaining of International Lease Finance Corporation (ILFC), a supplier of rented air ship to the aerial shuttle industry. The early 2000s saw a time of development as AIG gained American General
References: Cunningham. Lawerence A (2013), The AIG Story. Hoboken, New Jersey: John Wiley & Sons, Inc Ian Macdonald (2005), AIG Admits 'Improper ' Accounting Retrieved from http://www.wsj.com/articles/SB111218569681893050 Healy, P.M. and Palepu, K.G. (2003), The Fall of Enron, Journal of Economic Perspectives, Vol 17 3-26 Salehi, M. and Rostami, V. (2009), Audit Expectation Gap: International Evidences, International Journal of Academic Research, Vol Anderson, J. (2005). A.I.G. Discloses Its Accounting Was Improper in Some Deals Retrieved From http://www.nytimes.com/2005/03/30/business/ Greider, W. (2010). The AIG Bailout Scandal Retrieved From http://www.thenation.com/article/153929/aig-bailout/