American International Group Inc. will push back a self-imposed Monday deadline for filing its twice-delayed annual financial report, The Wall Street Journal reported on Friday, citing people familiar with the matter.
The insurer, whose accounting practices are under investigation by regulators, and its auditors are struggling to determine the total impact of accounting errors that now are expected to lop more than $2.5 billion from AIG’s net worth, the paper said.
At a meeting late on Thursday afternoon, the AIG board’s audit committee agreed with the decision to delay, the Journal said.
AIG representatives told regulators yesterday that the delay was the result at least partly of the discovery of more accounting issues that merit attention and could boost the level of the company’s eventual accounting adjustments, the Journal said, citing two unnamed sources.
One new area under review involves AIG moving money into and out of hedge funds, in ways that may have been intended to burnish its quarterly reports, the paper reported.
AIG did not immediately return a call seeking comment.
