NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Income Securities Trust
NOTE A --
John Hancock Income Securities Trust (the "Fund") is a closed-end investment management company registered
under the Investment Company Act of 1940. Significant accounting policies of the Fund are as follows:
VALUATION OF INVESTMENTS Securities in the Fund's portfolio are valued on the basis of market
quotations, valuations provided by independent pricing services or, at fair value as determined in good faith in
accordance with procedures approved by the Trustees. Short-term debt investments maturing within 60 days are
valued at amortized cost which approximates market value.
JOINT REPURCHASE AGREEMENT Pursuant to an exemptive order issued by the Securities and Exchange
Commission, the Fund, along with other registered investment companies having a management contract with
John Hancock Advisers, Inc. (the "Adviser"), a wholly-owned subsidiary of The Berkeley Financial Group, may
participate in a joint repurchase agreement transaction. Aggregate cash balances are invested in one or more
repurchase agreements, whose underlying securities are obligations of the U.S. government and/or its agencies.
The Fund's custodian bank receives delivery of the underlying securities for the joint account on the Fund's
behalf. The Adviser is responsible for ensuring that the agreement is fully collateralized at all times.
INVESTMENT TRANSACTIONS Investment transactions are recorded as of the date of purchase, sale or
maturity. Net realized gains and losses on sales of investments are determined on the identified cost basis.
FEDERAL INCOME TAXES The Fund's policy is to comply with the requirements of the Internal Revenue
Code that are applicable to regulated investment companies and to distribute all of its taxable income, including
any net realized gain on investment, to its shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, the Fund