Notes to Financial Statements January 31, 2000
NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Mexico Equity and Income Fund, Inc. (the "Fund") was incorporated in Maryland on May 24, 1990, and
commenced operations on August 21, 1990. The Fund is registered under the Investment Company Act of
1940, as amended, as a closed-end, non-diversified management investment company.
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.
Significant accounting policies are as follows:
Portfolio Valuation. Investments are stated at value in the accompanying financial statements. All securities for
which market quotations are readily available are valued at the last sales price prior to the time of determination
of net asset value, or, if no sales price is available at that time, at the closing price last quoted for the securities
(but if bid and asked quotations are available, at the mean between the current bid and asked prices, rather than
the quoted closing price). Securities that are traded over-the-counter are valued, if bid and asked quotations are
available, at the mean between the current bid and asked prices. Investments in short-term debt securities having
a maturity of 60 days or less are valued at amortized cost if their term to maturity from the date of purchase was
less than 60 days, or by amortizing their value on the 61st day prior to maturity if their term to maturity from the
date of purchase when acquired by the Fund was more than 60 days. Securities for which market values are not
readily ascertainable, which aggregated $531,915 (0.51% of net assets) at January 31, 2000, are carried at fair
value as determined in good faith by, or under the supervision of, the Board of Directors.
Investment Transactions and Investment Income. Investment