AIG 2013 Annual Report Download - page 64

internally developed models. Therefore, actual results could differ from these estimates, possibly in the near term,
and could have a material effect on our consolidated financial statements.
Changes in accounting principles and financial reporting requirements could impact our reported results of
operations and our reported financial position. Our financial statements are subject to the application of
U.S. GAAP, which is periodically revised. Accordingly, from time to time, we are required to adopt new or revised
accounting standards issued by recognized authoritative bodies, including the Financial Accounting Standards Board
(FASB). The impact of accounting pronouncements that have been issued but are not yet required to be
implemented is disclosed in our reports filed with the SEC. See Note 2 of the Notes to the Consolidated Financial
Statements. The FASB and International Accounting Standards Board (IASB) have ongoing projects to revise
accounting standards for insurance contracts. While the final resolution of changes to U.S. GAAP and International
Financial Reporting Standards pursuant to these projects is unclear, changes to the manner in which we account for
insurance products could have a significant impact on our future financial reports, operations, capital management
and business. Further, the adoption of a new insurance contracts standard as well as other future accounting
standards could have a material effect on our reported results of operations and reported financial condition.
Changes in our assumptions regarding the discount rate, expected rate of return, and expected
compensation for our pension and other postretirement benefit plans may result in increased expenses and
reduce our profitability. We determine our pension and other postretirement benefit plan costs based on assumed
discount rates, expected rates of return on plan assets, expected increases in compensation levels and trends in
health care costs. Changes in these assumptions, including from the impact of a sustained low interest rate
environment, may result in increased expenses and reduce our profitability. See Note 21 to the Consolidated
Financial Statements for further details on our pension and postretirement benefit plans.
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AIG 2013 Form 10-K46
ITEM 1A / RISK FACTORS
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