NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD ENDED DECEMBER 31, 1999
1. SIGNIFICANT ACCOUNTING POLICIES: Meridian Fund (the "Fund") a series of Meridian Fund, Inc.
(the "Company"), began operations on August 1, 1984. The Fund was registered on August 1, 1984, under the
Investment Company Act of 1940, as amended, as a no-load, diversified, open-end management investment
company. The primary investment objective of the Fund is to seek long-term growth of capital. In addition to the
Meridian Fund, the Company also offers the Meridian Value Fund. The following is a summary of significant
a. INVESTMENT VALUATIONS: Marketable securities are valued at the last sales price on the principal
exchange or market on which they are traded; or, if there were no sales that day, at the last reported bid price.
Short-term investments that will mature in 60 days or less are stated at amortized cost, which approximates
b. FEDERAL INCOME TAXES: It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders;
therefore, no federal income tax provision is required. The aggregate cost of investments for federal income tax
purposes is $92,588,486, the aggregate gross unrealized appreciation is $47,753,924, and the aggregate gross
unrealized depreciation is $8,894,260, resulting in net unrealized appreciation of $38,859,664.
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 for both financial statement and federal income tax purposes. Dividend income is recorded
on the ex-dividend date. Interest income and accretion income are accrued daily.
d. CASH AND CASH EQUIVALENTS: All highly liquid investments with an original maturity of three months
or less are considered to