NOTES TO FINANCIAL STATEMENTS
October 31, 2008
NOTE 9. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial
Accounting Standards No. 157, “Fair Value Measurements” (SFAS No. 157). SFAS No. 157 defines fair
value, establishes a framework for measuring fair value in accordance with generally accepted accounting
principles and expands disclosure about fair value measurements. SFAS No. 157 is effective for fiscal years
beginning after November 15, 2007. In February 2007, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards (SFAS) No. 159, “The Fair Value Option for Financial
Assets and Financial Liabilities—including an amendment of FASB Statement No. 115.” SFAS No. 159 permits
entities to elect to measure certain financial assets and liabilities at fair value. Unrealized gains and losses on items
for which the fair value option has been elected will be reported in earnings at each subsequent reporting date.
SFAS No. 159 is effective as of the beginning of the first fiscal year that begins after November 15, 2007. The
Fund will adopt SFAS No. 157 and SFAS No. 159 on November 1, 2008, and appropriate disclosures will be
included on the next applicable regulatory filing with the SEC.
In March 2008, FASB issued Statement of Financial Accounting Standards No. 161 (“SFAS 161”)
“Disclosures about Derivative Instruments and Hedging Activities”—an amendment of FASB Statement No. 133
(“SFAS 133”),” expands the disclosure requirements in SFAS 133 about entity’s derivative instruments and
hedging activities. SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008.
Management is currently evaluating the impact the adoption of SFAS No. 161 will have on the Fund’s financial
Management believes that the adoption SFAS No. 157, SFAS No. 159, and SFAS No. 161 will not have a