Notes to Financial Statements (unaudited)
1. SUMMARY OF ACCOUNTING POLICIES
Templeton Emerging Markets Fund, Inc. (the Fund) is a closed-end, diversified management investment
company registered under the Investment Company Act of 1940. The following summarizes the Fund's significant
a. Securities Valuations:
Securities listed or traded on a recognized national or foreign stock exchange or NASDAQ are valued at the last
reported sales prices on the principal ex- change on which the securities are traded. Over-the-counter securities
and listed securities for which no sale is reported are valued at the mean between the last current bid and asked
prices. Securities for which market quotations are not readily available are valued at fair value as determined by
management and approved in good faith by the Board of Directors.
b. Foreign Currency Translations:
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S.
dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. Purchases
and sales of portfolio securities and income items denominated in foreign curren- cies are translated into U.S.
dollar amounts on the respective dates of such transactions. When the Fund purchases or sells foreign securities it
customar- ily enters into foreign exchange contracts to minimize foreign exchange risk between the trade date and
the settlement date of such transactions.
The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange
rates on investments from the fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of for- eign currencies, currency gains or
losses realized between the trade and set- tlement dates on security transactions, the differen