NOTES TO FINANCIAL STATEMENTS
December 31, 2007
1. ORGANIZATION and SIGNIFICANT ACCOUNTING POLICIES (continued)
c) Distributions to Shareholders – Dividends to shareholders are recorded on the ex-dividend date.
The Fund declares and pays dividends from net investment income at least annually. The Fund
distributes net capital gains, if any, on an annual basis. The amounts of dividends from net
investment income and of distributions from net realized gains are determined in accordance with
federal income tax regulations which may differ from GAAP. These differences are primarily due
to deferrals of certain losses and expiring capital loss carryforwards. These "book/tax" differences
are either considered temporary or permanent in nature. To the extent these differences are
permanent in nature such amounts are reclassified within the composition of net assets based on
their federal tax-basis treatment; temporary differences do not require reclassification.
d) Other – Investment and shareholder transactions are recorded on trade date. The Fund
determines the gain or loss realized from the investment transactions by comparing the original cost
of the security lot sold with the net sales proceeds. Dividend income is recognized on the ex-
dividend date or as soon as information is available to the Fund and interest income is recognized on
an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with
the Fund’s understanding of the applicable country’s tax rules and rates.
The Fund adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 – Accounting
for Uncertainty in Income Taxes, on January 1, 2007. FASB Interpretation No. 48 requires that the
tax effects of certain tax positions be recognized. These tax provisions must meet a “more likely
than not” standard that based on their technical merits, have a more than 50 percent likelihood of
being sustained upon examination. At adoption, the financial statemen