Notes to Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES
Institutional Fiduciary Trust (the Trust) is an open-end management investment company (mutual fund), registered
under the Investment Company Act of 1940, as amended. The Trust consists of seven separate funds (the
Funds). This report pertains only to the Franklin Cash Reserves Fund (the Fund), a no-load, diversified series of
the Trust. Each of the Funds issues a separate series of the Trust's shares and maintains a totally separate
investment portfolio. The Fund's investment objective is high current income.
The Fund invests substantially all of its assets in The Money Market Portfolio (the Portfolio), which is a no-load,
open-end, diversified management investment company having the same investment objective as the Fund. The
financial statements of the Portfolio, including the Statement of Investments in Securities and Net Assets, are
included elsewhere in this report and should be read in conjunction with the Fund's financial statements.
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation
of its financial statements. The policies are in conformity with generally accepted accounting principles for
a. Security Valuation:
The Fund holds Portfolio shares that are valued at its proportionate interest in the net asset value of the Portfolio.
At June 30, 1997, the Fund owned 4.32% of the Portfolio.
b. Income Taxes:
The Fund intends to continue to qualify for the tax treatment applicable to regulated investment companies under
the Internal Revenue Code and to make the requisite distributions to its shareholders which will be sufficient to
relieve it from income and excise taxes.
c. Security Transactions:
Security transactions are accounted for on the date the securities are purchased or sold (trade date). Realized
gains and losses on security transactions are determined on the basis of specific identification.
d. Investment Income, Exp