NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000 ALLIANCE INSTITUTIONAL RESERVES
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Institutional Reserves, Inc. (the "Fund") is registered under the Investment Company Act of 1940 as an
open-end investment company. The Fund operates as a series company currently consisting of five Portfolios:
Prime Portfolio, Government Portfolio, Tax-Free Portfolio, Trust Portfolio and Treasury Portfolio. Each Portfolio
is considered to be a separate entity for financial reporting and tax purposes. The Prime, Government, Treasury
and Tax-Free Portfolios offer all three classes of shares. Each Portfolio pursues its objectives by maintaining a
portfolio of high-quality money market securities all of which, at the time of investment, have remaining maturities
of 397 days or less. The financial statements have been prepared in conformity with generally accepted
accounting principles which require management to make certain estimates and assumptions that affect the
reported amounts of assets and liabilities in the financial statements and amounts of income 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.
1. VALUATION OF SECURITIES Securities in which the Fund invests are traded primarily in the over-the-
counter market and are valued at amortized cost, under which method a portfolio instrument is valued at cost and
any premium or discount is amortized on a constant basis to maturity. Certain illiquid securities containing
unconditional par puts are also valued at amortized cost. Amortization of premium is charged to income.
Accretion of market discount on tax-exempt securities is credited to unrealized gain.
2. TAXES It is the Fund's policy to meet the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its investment company taxable income and net realized gains, if any,
to its shar