NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Strategic Income Fund (the "Fund") is a separate series of AIM Investment Funds (the "Trust"). The Trust
is organized as a Delaware business trust and is registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open-end series management investment company consisting of twelve separate
series portfolios, each having an unlimited number of shares of beneficial interest. The Fund currently offers three
different classes of shares: Class A shares, Class B shares and Class C shares. The Fund formerly offered
Advisor Class shares; however, as of the close of business on February 11, 2000 the Advisor Class shares were
converted to Class A shares. Class A shares are sold with a front-end sales charge. Class B shares and Class C
shares are sold with a contingent deferred sales charge. Advisor Class shares were sold without a 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 high current income,
and its secondary investment objective is growth of capital.
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 the significant accounting policies
followed by the Fund in the preparation of its financial statements.
A. Security Valuations--A security listed or traded on an exchange (except convertible bonds) is valued at its last
sales price as of the close of the customary trading session on the exchan