NOTES TO FINANCIAL STATEMENTS
1. The Income Fund of America, Inc. (the "fund") is registered under the Investment Company Act of 1940 as an
open-end, diversified management investment company. The fund seeks current income while secondarily striving
for capital growth through investments in stocks and fixed-income securities. The following paragraphs summarize
the significant accounting policies consistently followed by the fund in the preparation of its financial statements:
Equity-type securities traded on a national securities exchange (or reported on the NASDAQ national market)
and securities traded in the over-the-counter market are stated at the last-reported sales price on the day of
valuation; other securities, and securities for which no sale was reported on that date, are stated at the last quoted
Bonds and notes are valued at prices obtained from a bond-pricing service provided by a major dealer in bonds,
when such prices are available; however, in circumstances where the investment adviser deems it appropriate to
do so, such securities will be valued at the mean of their representative quoted bid and asked prices or, if such
prices are not available, at prices for securities of comparable maturity, quality, and type.
Short-term securities with original or remaining maturities in excess of 60 days are valued at the mean of their
quoted bid and asked prices. Short-term securities with 60 days or less to maturity are valued at amortized cost,
which approximates market value.
Securities for which market quotations are not readily available are valued at fair value as determined in good
faith by the Valuation Committee of the Board of Directors.
As is customary in the mutual fund industry, securities transactions are accounted for on the date the securities are
purchased or sold. Realized gains and losses from securities transactions are reported on an identified cost basis.
Dividend and interest income is reported on the accrual basis. Discounts on securities purchased