Notes to Financial Statements (unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Franklin Cash Reserves Fund (the Fund) is a separate, diversified series of Institutional Fiduciary Trust (the
Trust). The Trust is registered under the Investment Company Act of 1940 as a diversified, open-end investment
company, consisting of three separate series (the Funds). The Fund seeks high current income consistent with the
preservation of capital and liquidity.
The Fund invests substantially all of its assets in The Money Market Portfolio (the Portfolio), which is registered
under the Investment Company Act of 1940 as a diversified, open-end investment company having the same
investment objectives as the Fund. The financial statements of the Portfolio, including the Statement of
Investments, are included elsewhere in this report and should be read in conjunction with the Fund's financial
The following summarizes the Fund's significant accounting policies.
a. SECURITY VALUATION
The Fund holds portfolio shares that are valued at its proportionate interest in the net asset value of the Portfolio.
As of December 31, 2000, the Fund owns 3.34% of the Portfolio.
b. INCOME TAXES
No provision has been made for income taxes because the Fund's policy is to qualify as a regulated investment
company under the Internal Revenue Code and to distribute substantially all of its taxable income.
c. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are
determined on a specific identification basis. Income and estimated expenses are accrued daily. Dividends from
net investment income and capital gains or losses are normally declared daily and distributed monthly.
Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each
fund to the combined net assets. Other expenses are charged to each fund on a specific identific