American Institute for Economic Research and Subsidiary

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolid. [...] Board of Trustees American Institute for Economic Research and Subsidiary Page 2 Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material re- spects, the financial position of the American Institute for Economic Research and Subsidiary as of De- cember 31, 2015 and 2014, and the changes in their net assets and their cash flows for the years th. [...] Estimates The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contin- gent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues, gains, other support, and expenses during the reporting period. [...] Consider- ation is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, and (3) the intent and ability of the Organization to retain its investment in the issuer for a period of time sufficient to allow for any an- ticipated recovery in fair value. [...] The obligations are estimated at the time of the agreements (pooled income or unitrust) based on the average life expectancies of the beneficiaries and the expected rate of return on invested assets.