NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Income 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, 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. The Class B 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 investment objective is
to seek to achieve a high level of current income consistent with reasonable concern for safety of principal by
investing primarily in fixed rate corporate debt and U.S. Government obligations.
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-Debt obligations (including convertible bonds) are valued on the basis of prices provided
by an independent pricing service. Prices provided by the pricing service may be determined without exclusive
reliance on quoted prices, and may reflect appr