AOL certifies results, but reviewing $49M

NEW YORK (CNN/Money) -- AOL Time Warner Inc. Wednesday said its top executives have certified the accuracy of the company's financial results, meeting a new U.S. federal requirement, but at the same time called into question $49 million in recently reported advertising and commerce revenue.

AOL Time Warner, the parent of CNN, said CEO Richard Parsons and Chief Financial Officer Wayne Pace each signed sworn statements verifying the authenticity of the company's financial results, meeting a 5:30 p.m. deadline.

It was unclear until early Wednesday morning whether AOL Time Warner's executives would comply with the new rule, imposed by the Securities and Exchange Commission following a series of accounting scandals.

Parsons, who took the reins of the world's largest media company earlier this year, previously had expressed his opposition to the rule.

"I consider the accuracy of AOL Time Warner's financial reporting to be one of my most important responsibilities, and I am committed to giving investors accurate and transparent information about the company," Parsons said in a prepared statement.

Three transactions

In that same statement, AOL Time Warner pointed out that in its comprehensive quarterly financial statement filed with the SEC concurrently with the financial certifications, the company disclosed that it had identified three transactions totaling roughly $49 million that may have been inappropriately recognized as advertising and commerce revenue.

The transaction took place at its America Online Internet service unit, which currently is the subject of an SEC investigation.

Although it characterized the transactions, which took place over a period of six quarters, as "an insignificant portion of the company's revenue during that period," AOL Time Warner said it is further reviewing them as well as others involving the AOL division relating to advertising and commerce revenue.

After completing its internal review, AOL Time Warner said it will determine whether its accounting for any transactions was not appropriate, and if so, what action, if any, is appropriate with respect to its reported financial results.

Earlier Wednesday, AOL Time Warner confirmed that David Colburn, formerly the top deal maker for the America Online Internet unit and allegedly responsible for the revenue deals in question, has left the company.