AIG accounting scandal (2005) - Income Statement report Essay

AIG accounting scandal (2005) - Income Statement report - Essay Example hese scandals, postmortem results indicate presence of a creative accounting process, a phenomenon characterized by complex methods of funds redirecting and misuse as well as overstated revenues and improper reporting of expenses and liabilities. According to Roddy (2011, pp 34), the most significant scandal of the last decade involved Tyco, HealthSouth, Enron, WorldCom, and AIG among others. This paper aims at exploring the accounting scandal that affected American Insurance Group in 2005. American Insurance Group (AIG) is a multinational insurance corporation. It is regarded as the World’s largest insurance company with over 90,000 workers and offices in over 130 countries. The company is also involved in other forms of business including aircraft leasing and assets management in many parts of the world. During this time of the scandal, the company was led by Maurice Greenburg, the long-time serving leader, having led the company since 1968. He was named as the person involved in the scandal, and eventually pressured to step down in 2005. The company came under scrutiny first in 2001 after it was realized that a client company had been assisted to strengthen their balance sheet fraudulently. Investigations were started and in 2003, a penalty of $10 Million was passed by SEC to settle the issue. The company’s income smoothing products were investigated in 2004 and a bid rigging complaint filed. Kay (2005) wrote that the company admitted to having conducted improper accounting exercises. When the company finally released the 2004 annual earnings, it was discovered that re-insurance deals with GenRe were not accounted for in the deposits. A restatement of this resulted to a decrease in the earnings by $1.32 Billion. According to Martin and Wesley (2005), several lawsuits were filed against AIG starting with one by the Attorney General concerning misleading accounting which Greenberg dismissed as political war. Others were filed by the federal agency leading to

Analyze and explain the development of healthy relationships Essay

Analyze and explain the development of healthy relationships - Essay Example In this mini-paper, the following ingredients necessary for the development of healthy relationships will be elaborated on: (a) Love; (b) Good Communication; (c) Patience; (d) Trust; and (e) Loyalty. Rohn (2010) asserts that love is the basic requirement for a healthy relationship. It is more than just a feeling. It is a commitment to people around us and who mean to us that we will respect them and treat them justly at all costs. A relationship cannot be a fulfilling one if we compromise upon respect and dignity. Respect and be respected; love and be loved; and, this will ensure a satisfying relationship. Good communication waters the plant of a healthy relationship. It requires particular skills to have one’s ideas conveyed to the other person and to listen to his ideas patiently. One should try to let the other person know explicitly what one wants without having him solve the puzzle. Keeping others thinking what the actual problem is will do no good. While communicating, one must be humble and compromising instead of trying to control the other person’s thoughts and should be able to give space to his ideas too. Patience is another vital ingredient for a healthy relationship. We must understand that there will be times when our relations will disappoint us and vice versa, and that no person in this world is perfect. We also disappoint others and should expect others to fail us. It is patience that maintains a relationship through turmoil. Showing patience to others’ disagreements shows that we value them and respect their opinion, and this is natural for people to stay relaxed with people who tolerantly listen to them and try to understand the problem patiently. This fosters healthy relationships. When we trust the other person, this means that we are giving him enough space so that he can pursue his own interests, can make relationships and can do everything he wants without getting ourselves insecure and jealous. When we tell