NOTES TO FINANCIAL STATEMENTS
Vanguard Index Trust is registered under the Investment Company Act of 1940 as a diversified open-end
investment company, and consists of the 500, Extended Market, Total Stock Market, Growth, Value, and Small
Capitalization Stock Portfolios.
* A. The following significant accounting policies are in conformity with generally accepted accounting principles
for investment companies. Such policies are consistently followed by the Trust in the preparation of financial
1. SECURITY VALUATION: Securities listed on an exchange are valued at the latest quoted sales prices as of
4:00 PM on the valuation date; securities not traded are valued at the mean of the latest quoted bid and asked
prices. Unlisted securities held by the 500, Growth, and Value Portfolios are valued at the latest quoted bid
prices; such securities held by the Extended Market, Total Stock Market, and Small Capitalization Stock
Portfolios are valued at the mean of the latest quoted bid and asked prices. Temporary cash investments are
valued at amortized cost which approximates market value.
2. FEDERAL INCOME TAXES: Each Portfolio of the Trust intends to continue to qualify as a regulated
investment company and distribute all of its taxable income. Accordingly, no provision for Federal income taxes is
required in the financial statements.
3. EQUALIZATION: The 500, Total Stock Market, Growth, and Value Portfolios follow the accounting
practice known as "equalization," under which a portion of the price of capital shares issued and redeemed,
equivalent to undistributed net investment income per share on the date of the transaction, is credited or charged
to undistributed income. As a result, undistributed income per share is unaffected by Portfolio share sales or
4. REPURCHASE AGREEMENTS: The Trust, along with other members of The Vanguard Group of
Investment Companies, transfers uninvested cash balances into a Pooled Cash Account, the daily aggregate of
which is invested in