NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
The Latin American Discovery Fund, Inc. (the "Fund") was incorporated on November 12, 1991 and is
registered as a non-diversified, closed-end management investment company under the Investment Company Act
of 1940, as amended. The Fund's investment objective is long-term capital appreciation through investments
primarily in equity securities.
A. The following significant accounting policies are in conformity with generally accepted accounting principles for
investment companies. Such policies are consistently followed by the Fund in the preparation of its financial
statements. Generally accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ
from those estimates.
1. SECURITY VALUATION: In valuing the Fund's assets, all listed securities, including purchased options, for
which market quotations are readily available are valued at the last sales price on the valuation date, or if there
was no sale on such date, at the mean between the current bid and asked prices. Securities which are traded
over-the-counter are valued at the average of the mean of current bid and asked prices obtained from reputable
brokers. Short-term securities which mature in 60 days or less are valued at amortized cost. All other securities
and assets for which market values are not readily available (including investments which are subject to limitations
as to their sale) are valued at fair value as determined in good faith by the Board of Directors ("the Board"),
although the actual calculations may be done by others.
2. TAXES: It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of
its taxable income. Accordingly, no provision for U.S. Federal income taxes is required in the financial
statements. The Fund may be subject to taxes imposed by countries in which it invests. Such tax