NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Charter Fund (the "Fund") is a series portfolio of AIM Equity Funds, Inc. (the "Company"). The Company
is a Maryland corporation 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. 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. 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 generally accepted accounting principles 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 Fund in the preparation of its financial statements.
A. Security Valuations--A security listed or traded on an exchange (except convertible bonds) is valued at its last
sales price as of the close of the customary trading session on the exchange where the security is principally
traded, or lacking any sales on a particular day, the security is valued at the closing bid price on that day. Each
security reported on the NASDAQ National Market System is valued at the last sales price on the valuation date
or absent a last sales price, at the closing bid