Financial Accounting Blog

Thursday, October 30, 2003

This article discusses a $1.2 billion accounting error found recently in Fannie Mae. According to their spokeperson, "THE ERROR, which Fannie Mae said was due to a change in accounting rules, does not affect the company’s net income. It resulted in increases to unrealized gains on securities, accumulated other comprehensive income and total stockholders’ equity..." The stock price declined due to this news. -KC Ho