572 
APPENDIX 
holders at least fifteen days in advance of the annual meeting of the invest- 
ment trust. The statement shall show separately gross earnings, if any, 
under at least the following classifications : 
[nterest 
Dividends 
Profit on sale of securities 
Profit in syndicate participations 
Transfers from reserves previously created, if any 
Miscellaneous. 
Only actual realized earnings shall be shown in the income account or 
shall be reflected in the balance sheet figures. 
In case the item “Miscellaneous Earnings” appears to the Committee 
to require explanation, such item must be further classified as to origin. 
The Income Account shall include all revenue, as well as all losses, 
from whatever source derived. It shall reflect in the aggregate a profit or 
loss upon each and every completed transaction consummated by a purchase 
and sale of securities. A technical short sale against a long position must 
not be used for the purpose of considering any transaction as incomplete. 
Stock dividends must not be considered as income. 
The Income Account shall include no profits resulting from participation 
in a syndicate, offering securities to the public, until such syndicate is 
closed. If the applicant enters into any other operations in account with 
others, the profit or loss at the date of each published financial statement 
must be reflected therein. 
As a footnote to the Income Account there shall be a clear statement 
of the increase or decrease during the current year of the amount by which 
the market value of the securities held exceeds or is less than their 
book value. 
If reserves against possible losses are set aside out of profits, the 
Income Account must show the amount so appropriated during the current 
accounting period, and the accrued reserves to date against losses shall 
also be shown in the balance sheet. 
Expenses and deductions must be reported in such reasonable detail as 
the Committee may determine, including showing separately, at least: 
Interest paid and accrued 
Taxes paid and accrued 
Transfers to reserves, if any. 
The statement of surplus shall show the amount carried forward as 
surplus from the immediately preceding period and indicate in detail all 
additions thereto and deductions therefrom. 
BALANCE SHEET 
A comprehensive and detailed balance sheet shall be prepared and pub- 
lished within thirty days after the close of each year. Such balance sheet 
shall also be submitted to stockholders at least fifteen days in advance of the 
annual meeting of the investment trust. 
The valuation of securities held must be shown upon the balance sheet 
at cost, summarized in reasonable detail. There must be appended to each 
balance sheet a footnote showing the aggregate cost of all securities owned, 
their aggregate current value, and the difference.