NOTES TO FINANCIAL STATEMENTS
daily and the change in market value is recorded by the Funds as an unrealized gain or loss. When a contract is
closed, a realized gain or loss is recorded by the Funds equal to the difference between the opening and closing
value of the contract. A Fund could be exposed to risk if the counterparties are unable to meet the terms of the
contracts. Debt obligations with remaining maturities of 60 days or less are valued at cost adjusted for
amortization of premiums and accretion of discounts. Investment transactions are accounted for on the trade date.
Dividend income and distributions to shareholders are recorded on the ex-dividend date and interest income is
recorded on the accrual basis. In preparing financial statements in conformity with generally accepted accounting
principles, management makes estimates and assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements, as well as the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
2 Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all taxable investment income and net capital gains, if any,
after utilization of any capital loss carryforward, to shareholders and therefore no Federal income tax provision is
Distributions from net realized gains, if any, are normally declared and paid annually. Distributions are determined
in accordance with income tax regulations which may differ from generally accepted accounting principles. These
differences are primarily due to differing treatments for capital loss carryforwards, post-October capital losses,
net operating losses and foreign currency transactions.
At December 31,1999, Midas Fund, Inc. had an unused capital loss carryforward of approximately
$128,264,500 of which $2,587,100, $25,267,300, $12,176,100 and $88,23