Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
International Equity Portfolio (the "Portfolio") ("IEP") is separately registered under the Investment Company Act
of 1940, as amended, as a non- diversified, open end management investment company organized as a trust
under the Laws of the State of New York. The declaration of trust permits the Trustees to issue beneficial
interests in the Portfolio.
The following is a summary of significant accounting policies followed by the Portfolio:
The preparation of financial statements in accordance with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
Investments in international markets may involve certain considerations and risks not typically associated with
investments in the United States. Future economic and political developments in foreign countries could adversely
affect the liquidity or value, or both, of such securities in which the Portfolio is invested.
A. Valuation of Investments -- Equity securities, purchased options and futures contracts are valued at the last
sale price on the exchange on which they are primarily traded, including the NASDAQ National Market.
Securities for which sale prices are not available and other over-the-counter securities are valued at the last
quoted bid price. Bonds and other fixed income securities (other than short-term obligations), including listed
issues, are valued on the basis of valuations supplied by pricing services or by matrix pricing systems of a major
dealer in bonds. Short-term debt securities with 61 days or more to maturity at time of purchase are valued,
through the 61st day prior to maturity, at market value based on quotations obtained from market makers or
other appropriate sources; thereafter, the value on the 61st day is amortized on a straight-line basis over the