Freddie Mac 2004 Annual Report Download - page 154

REPORT OF INDEPENDENT AUDITORS
To the Board of Directors and Stockholders of Freddie Mac:
In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of
income, of cash Öows, and of stockholders' equity present fairly, in all material respects, the Ñnancial position
of Freddie Mac, a stockholder-owned government-sponsored enterprise (the ""company''), and its subsidiaries
at December 31, 2004 and 2003, and the results of their operations and their cash Öows for each of the three
years in the period ended December 31, 2004, in conformity with accounting principles generally accepted in
the United States of America. These Ñnancial statements are the responsibility of the company's management.
Our responsibility is to express an opinion on these Ñnancial statements based on our audits. We conducted
our audits of these statements in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the Ñnancial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the Ñnancial statements, assessing the accounting
principles used and signiÑcant estimates made by management, and evaluating the overall Ñnancial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
We have also audited in accordance with auditing standards generally accepted in the United States of
America the supplemental consolidated fair value balance sheets of the company as of December 31, 2004 and
2003. As described in ""NOTE 16: FAIR VALUE DISCLOSURES,'' the supplemental consolidated fair
value balance sheets have been prepared by management to present relevant Ñnancial information that is not
provided by the historical-cost consolidated balance sheets and is not intended to be a presentation in
conformity with generally accepted accounting principles. In addition, the supplemental consolidated fair
value balance sheets do not purport to present the net realizable, liquidation, or market value of the company
as a whole. Furthermore, amounts ultimately realized by the company from the disposal of assets or amounts
required to settle obligations may vary signiÑcantly from the fair values presented. In our opinion, the
supplemental consolidated fair value balance sheets referred to above present fairly, in all material respects,
the information set forth therein as described in ""NOTE 16: FAIR VALUE DISCLOSURES.''
As discussed in ""NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,'' the
company adopted the provisions of FASB Interpretation No. 45, ""Guarantor's Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others'' and FASB StaÅ
Position 45-2 ""Whether FASB Interpretation No. 45, "Guarantor's Accounting and Disclosure Requirements
for Guarantees, Including Indirect Guarantees of Indebtedness of Others,' Provides Support for Subsequently
Accounting for a Guarantor's Liability at Fair Value,'' as of January 1, 2003.
McLean, Virginia
June 1, 2005
Freddie Mac
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