NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009 (UNAUDITED)
NOTE 7. NEW ACCOUNTING PRONOUNCEMENTS
In March 2008, FASB issued the Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and
Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161
requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their
effect on the Fund’s financial position, performance and cash flows. Management believes no adjustments were necessary to the financial
statements at adoption.
The Fund adopted Financial Accounting Standards Board Standard No. 157-4 – Determining Fair Value When the Volume and Level of
Activity for the Asset or Liability have Significantly Decreased and Identifying Transactions that are Not Orderly on June 15, 2009.
At adoption the Fund evaluated the level and activity for the assets and liabilities of the Fund to ascertain that the fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction (that is, not a forced liquidation or distressed sale)
between market participants at the measurement date under current market conditions. Management of the Fund does not believe that any
adjustments were necessary to the financial statements at adoption.
In May 2009, FASB issued Statement of Financial Standards No. 165, (“SFAS 165”). SFAS 165 is effective for fiscal years and interim
periods ending after June 15, 2009. SFAS 165 requires the disclosure of the date through which an entity has evaluated subsequent events
and the basis for that date – that is, whether that date represents the date the financial statements were issued or were available to be issued.
In accordance with the adoption of SFAS No. 165, and in preparing these financial statements, the Fund has evaluated events and
transactions for potential recognition or di