NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Ivy Emerging Growth Fund (the Fund) is a series of shares of Ivy Fund. The shares of beneficial interest are
assigned no par value and an unlimited number of shares of Class A, Class B and Class C are authorized. Ivy
Fund was organized as a Massachusetts business trust under a Declaration of Trust dated December 21, 1983
and is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Following is a summary of significant accounting policies consistently followed by the Fund in the preparation of
its financial statements. The policies are in conformity with generally accepted accounting principles. Preparation
of the financial statements includes the use of management estimates. Actual results could differ from those
SECURITY VALUATION -- Securities for which market quotations are readily available are valued at market.
Short-term obligations and commercial paper are valued at amortized cost, which approximates market. Debt
securities (other than commercial paper and other short-term obligations) are valued on the basis of valuations
furnished by a pricing service authorized by the Board of Trustees (the Board), which determines valuations
based upon market transactions for normal, institutional-size trading units of such securities. For valuation
purposes, quotations of foreign securities in foreign currencies are translated into U.S. dollar equivalents using the
foreign exchange quotation in effect. All other securities are valued at their fair value as determined in good faith
by the Valuation Committee of the Board; as of June 30, 1996 there were no such securities.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on
the trade date. Dividend income is recorded on the ex-dividend date, and interest income is accrued on a daily
basis. Realized gains and losses from security transactions