NOTES TO FINANCIAL STATEMENTS
December 31, 1999
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Balanced Fund (the "Fund") is a series portfolio of AIM Funds Group (the "Trust"). The Trust is a
Delaware business trust registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as
an open-end series management investment company consisting of nine separate 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. 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. 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 to achieve as high a total return as possible,
consistent with preservation of capital, by investing in a broadly diversified portfolio of high-yielding securities,
including common stocks, preferred stocks, convertible securities and bonds.
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 on the exchange where the security is principally traded, or lacking any sales on a particular day,