ICRC 2001 financial statements meet International Accounting Standards - ICRC first humanitarian organization to apply IAS
16-08-2002 News Release 02/45
The recently-released 2001 Annual Report of the International Committee of the Red Cross will for the first time present the ICRC’s financial data in accordance with the International Accounting Standards, or IAS.
Auditor KPMG submitted a positive report in April, allowing the Committee to approve the accounts. This makes the ICRC the first humanitarian organization in the world to bring its financial reporting into line with the IAS.
The IAS helps businesses and other bodies conduct their accounting and financial reporting to high, uniform standards that are recognized throughout the world. As there are no Swiss or international accounting regulations for non-profit organizations (NPOs), the ICRC decided to apply the IAS, even though they do lack rules on issues specific to NPOs, such as non-reciprocal transfers. Another factor influencing the decision was the EU’s June edict rendering the IAS mandatory for all companies listed on the stock exchange, a move considered likely to affect other types of organization long-term.
As one of the best-known NPOs, the ICRC aims to lead the field in the quality of its accounting methods. Clear, reliable financial information helps it meet its reporting obligations to existing donors – especially governments – and encourages others to consider partnerships with the organization.
Key figures from the 2001 accounts:
contributions: Sfr 829.7 million (2000: Sfr 836.3 million);
operational expenditure: Sfr 644.4 million (2000: Sfr 739.1 million);
headquarters costs: Sfr 145.3 million (2000: Sfr 143.7 million);
surplus: Sfr 46.6 million (2000: deficit of Sfr 33.1 million);
equity ratio: 67.1% (2000: 62.1%);
cash flow: Sfr 96.2 million (2000: -34.8 million) .