The latest revelation came as the company announced third-quarter earnings in line with expectations, with advertising revenue at AOL down by 48%.
The US Securities and Exchange Commission launched a review of AOL's advertising deals in July. An internal review launched by the company in August had already revealed $49m worth of fictitious revenue.
The restatement will force AOL to lower its advertising revenue by $190m and earnings before interest, taxes, depreciation and amortisation by $97m over two years. This amounts to 1% of AOL's total revenue of $2.2bn or 2% of earnings.
Excepting AOL's results, earnings across the group rose by 11%, with traditional media businesses including Warner Music performing well.
Shares rose in New York by 7% in after-hours trading to $14.45 on news of earnings in line with the company's growth targets for 2002.
Investors said they would be fully reassured only when they were sure that no more restatements were possible. The company said it had reviewed 70% of America Online's total ad and commerce revenue but did not expect any more major revisions.
Executives said robust earnings from cable networks, publishing and film, including the second release in the Harry Potter series, would help it meet its targets for 2002.
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