NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Balanced Fund (the "Fund") is a series portfolio of AIM Funds Group (the "Trust"). The trust is a Delaware
business trust registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-
end series management investment company consisting of nine separate series portfolios, each having an unlimited
number of shares of beneficial interest. The Fund currently offers three different classes of shares: the Class A
shares, the Class B shares and the Class C shares. The new Class C shares commenced sales on August 4,
1997. 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 objective is
to achieve as high a total return to investors as possible, consistent with preservation of capital, by investing in a
broadly diversified portfolio of high-yielding securities, including common stocks, preferred stocks, convertible
securities and bonds.
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 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 on the exchange where the security is principally traded, or lacking any sales on a pa