MONEY MARKET MASTER PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
Master Investment Portfolio (“MIP”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as
an open-end series management investment company organized as a Delaware statutory trust. As of December 31, 2007, MIP
offered the following separate portfolios: Active Stock, Bond Index, CoreAlpha Bond, Government Money Market, LifePath
Retirement, LifePath 2010, LifePath 2020, LifePath 2030, LifePath 2040, Money Market, Prime Money Market, S&P 500 Index and
Treasury Money Market Master Portfolios.
These financial statements relate only to the Money Market Master Portfolio (the “Master Portfolio”).
Pursuant to MIP’s organizational documents, the Master Portfolio’s officers and trustees are indemnified against certain
liabilities that may arise out of the performance of their duties to the Master Portfolio. Additionally, in the normal course of
business, the Master Portfolio enters into contracts with service providers that contain general indemnification clauses. The
Master Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be
made against the Master Portfolio that have not yet occurred.
The following significant accounting policies are consistently followed by MIP in the preparation of its financial statements in
conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for investment
companies. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.
S ECURITY V ALUATION
The Master Portfolio uses the amortized cost method of valuation to determin