Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 200

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 200
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, we use certain acronyms and terms which are defined in the Glossary.Basis of PresentationThe accompanying consolidated financial statements have been prepared in accordance with GAAP and include our accounts as well as the accounts of other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated.We are operating under the basis that we will realize assets and satisfy liabilities in the normal course of business as a going concern and in accordance with the authority provided by FHFA to our Board of Directors to oversee management's conduct of our business operations. Use of EstimatesThe preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities.  Management has made significant estimates to report the allowance for credit losses on single-family mortgage loans. Actual results could be different from these estimates.Significant Accounting PoliciesCash and Cash EquivalentsHighly liquid investment securities that have an original maturity of three months or less are accounted for as cash equivalents. Original maturity means the original maturity to us when we acquire the investment, not the original maturity of the instrument itself. Cash collateral accepted from counterparties that we do not have the right to use for general corporate purposes is classified as restricted cash and cash equivalents on our consolidated balance sheets. Restricted cash and cash equivalents includes cash remittances received from servicers of the underlying assets of our consolidated trusts which are deposited into a separate custodial account. We invest the cash held in the custodial account in short-term investments; and we are entitled to the interest income earned on these short-term investments, which is recorded as interest income on our consolidated statements of income.Comprehensive IncomeComprehensive income includes all changes in equity during a period, except those resulting from investments by, or distributions to, stockholders. Comprehensive income consists of net income plus other comprehensive income, including unrealized gains and losses on available-for-sale securities. 

FREDDIE MAC  |  2024 Form 10-K136

Financial StatementsNotes to Consolidated Financial Statements | Note 1

Other Significant Accounting PoliciesThe table below identifies our other significant accounting policies and the related note in which information about each policy can be found. NoteAccounting PolicyNote 3Securitization and Consolidation Note 4Mortgage LoansNote 5Guarantees and Other Off-Balance Sheet Credit ExposuresNote 6Allowance for Credit LossesNote 7Investment SecuritiesNote 8DebtNote 9Der