Separately, the internal review determined that AIG's accounting for certain derivatives under the Financial Accounting Standards Board's Statement of Financial Accounting Standards No.
However, as a result of its internal review, AIG management has identified certain control deficiencies, including (i) the ability of certain former members of senior management to circumvent internal controls over financial reporting in certain circumstances, (ii) ineffective controls over accounting for certain structured transactions and transactions involving complex accounting standards and (iii) ineffective balance sheet reconciliation processes.
Also, earlier consensuses on liability recognition for certain
employee termination benefits and other costs to exit an activity (including certain costs incurred in a restructuring) are covered.
For example, the $17,500 expensing cap for certain
qualified property under Internal Revenue Code section 179 is increased.
Specifically AJCA Section 211 (a)-(c) reduced the depreciation period for certain
leasehold improvements to 15 years and requires use of the straight-line method: see Sec.
150--Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and Equity
Because these practices had the effect of modifying the original terms of the option grants, the Audit Committee has determined that the Company should have recorded compensation expense for certain of these option grant modifications.
On several occasions, in order to select favorable exercise prices for certain newly hired executives or other senior personnel, the Company created employment records to establish start dates that preceded the date they actually began working for the Company.
To stimulate capital expenditures Congress previously enacted legislation providing for "Bonus" or accelerated depreciation for certain
new asset additions and improvements made after September 11, 2001 and prior to January 1, 2005.
42) The FIE Rules provide for special exemptions from the tax avoidance motive test for certain
NREs (including Regulated Investment Companies and Real Estate Investment Trusts as defined under the Code).
Return for a Partnership, REMIC, or for Certain
Trusts; and 8800, Application for Additional Extension of Time to File U.