NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Charter Fund (the "Fund") is a series portfolio of AIM Equity Funds (the "Trust"). The Trust is a Delaware
business trust registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-
end series management investment company consisting of eleven separate portfolios, each having an unlimited
number of shares of beneficial interest. Prior to June 17, 2000 the Fund was organized as a series portfolio of
AIM Equity Funds, Inc. At a meeting held on February 3, 2000, the Board of Directors of AIM Equity Funds,
Inc. approved an Agreement and Plan of Reorganization (the "Reorganization") which reorganized the Fund as a
series portfolio of the Trust. Shareholders of the Fund approved the Reorganization at a meeting held on June 16,
2000. The Fund currently offers four different classes of shares: Class A shares, Class B shares, Class C shares
and the Institutional Class. Class A shares are sold with a front-end sales charge. Class B shares and Class C
shares are sold with a contingent deferred sales charge. Institutional Class shares are sold without a sales charge.
Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or
class. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented
in these financial statements pertains only to the Fund. The Fund's investment objective is growth of capital with a
secondary objective of current income.
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates. The following is a summary of the
significant accounting policies followed by the