AOL has said that it may have improperly recognized around $49 million in revenues over six accounting periods. The statement came in the company’s latest SEC filing. AOL’s 10-Q filing shows that the company has highlighted three transactions where consideration received from third parties may have been stated as advertising and commerce revenues.
AOL’s parent company AOL Time Warner has said that the $49 million only amounts to a small proportion of the company’s revenue during the reporting periods concerned. However, AOL Time Warner admitted that it is conducting an investigation into the three highlighted transactions and other AOL transactions involving advertising and commerce revenues.
AOL Time Warner has also said that it believes that its results meet all the new regulations laid down by US authorities in the wake of the recent wave of accounting scandals that have rocked corporate America. Both its CEO Richard Parsons and CFO Wayne Pace have certified the company’s accounts.