What is window dressing?


1 Answer(s)


Window dressing or fudging accounts can be done on any of the financial statements. Some examples are -
1) Banks will temporarily move loans out of the balance sheet towards the end of the year just to show lower liabilities. Once the next year starts they will bring back the liabilities to their books

2) Sometimes portfolio managers will sell losing positions at the end of the year just to show that the portfolio only has mostly positions that have gained.