America Online and SEC Reach Agreement on Accounting Practices Discontinued in October 1996.Business Editors/Hi-Tech Writers DULLES, Va.--(BUSINESS WIRE)--May 15, 2000 America Online See AOL. , Inc. (NYSE NYSE See: New York Stock Exchange :AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. ) announced today that it and the Securities and Exchange Commission (SEC) have reached an agreement concerning accounting practices that the Company discontinued more than 3 1/2 years ago. At that time, in October, 1996, America Online discontinued capitalizing customer acquisition costs following its change to an unlimited-use pricing plan and took a one-time charge of $385 million in the first quarter of fiscal 1997 to reflect marketing costs capitalized during fiscal 1995 and 1996. Today's agreement has no impact on the Company's financial results reported since fiscal 1997. The agreement with the SEC calls for the Company to treat those costs as expenses in the period during which they were incurred. As a result, America Online will restate its historical results from 1995 to 1997 to reflect that changed treatment. Under the agreement, America Online is not admitting any wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong  do and will pay a penalty to the
SEC.
Founded in 1985, America Online, Inc., based in Dulles, Virginia Dulles, Virginia is an unincorporated census-designated place located in Loudoun County, Virginia, part of the Washington Metropolitan Area. The headquarters of AOL, Orbital Sciences Corporation and ODIN technologies and the former headquarters of MCI Inc. are located in Dulles. , is the world's leader in interactive services, Web brands, Internet technologies, and e-commerce services. |
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