NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
The Morgan Stanley Asia-Pacific Fund, Inc. (the "Fund"), was incorporated on February 28, 1994, 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, which are in conformity with generally accepted accounting
principles for investment companies, 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 for which market quotations are
readily available are valued at the last sale 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
The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on