An in-depth analysis of the 2003 Freddie Mac accounting scandal where the US Federal Home Loan Mortgage Corporation fraudulently misstated billions of dollars in earnings to meet Wall Street's expectations.
The manipulation by companies of certain items in their financial statements to eliminate large movements in profit and report a smooth trend over a number of years. This practice stems from the belief that investors prefer companies showing steady profit increases year by year.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.