Notes to Financial Statements
March 31, 1997
Delaware Group Equity Funds IV, Inc. - Capital Appreciation Fund is registered as a diversified open-end
investment company under the Investment Company Act of 1940. The Fund is organized as a Maryland
corporation and offers four classes of shares.
The objective of the Fund is to seek to provide investors with an investment that has the potential for capital
1. SIGNIFICANT ACCOUNTING POLICIES The following accounting policies are in accordance with
generally accepted accounting principles and are consistently followed by the Fund:
Security Valuation-Securities listed on an exchange are valued at the last quoted sales price as of 4:00 pm EST
on the valuation date. Securities not traded or securities not listed on an exchange are valued at the mean of the
last quoted bid and asked prices. Long-term debt securities are valued by an independent pricing service when
such prices are believed by the Board of Directors to reflect the fair value of such securities. Money market
instruments having less than 60 days to maturity are valued at amortized cost which approximates market value.
Federal Income Taxes-The Fund intends to continue to qualify as a regulated investment company and make the
requisite distributions to shareholders. Accordingly, no provision for federal income taxes is required in the
financial statements. Income and capital gain distributions are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
Repurchase Agreements-The Fund may invest in a pooled cash account along with other members of the
Delaware Group of Funds. The aggregate daily balance of the pooled cash account is invested in repurchase
agreements secured by obligations of the U.S. government. The respective collateral is held by the Fund's
custodian bank until the maturity of the respective repurchase agreements. Each repurchase agreement is 100%