NOTES TO FINANCIAL STATEMENTS
loss. When a contract is closed, a realized gain or loss is recorded by the Funds equal tothe 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 income and net capital gains, if any, after utilization
of any capital loss carryforward, to shareholders and therefore no Federal income tax provision is required.
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 $88,234,000 expires in 2004, 2005,
2006 and 2007, respectively. At December 31, 1999, Midas Investors Lt