Annual financial report and financial statements

AnnualFinancialReportandFinancialStatementsYeartoDecember31,2021 WorldIntellectualPropertyOrganization AnnualFinancialReportandFinancialStatements YeartoDecember31,2021 CONTENTS ANNUALFINANCIALREPORT4 INTRODUCTION4 FINANCIALSTATEMENTDISCUSSIONANDANALYSIS4 OperationsandEnvironment4 FinancialObjectivesandStrategies5 RiskManagement5 Environmental,SocialandGovernance5 COVID-19Pandemic6 FinancialPerformance20218 FinancialPosition202114 CashFlow202116 STATEMENTONINTERNALCONTROL202118 INDEPENDENTAUDITOR’SREPORT22 FINANCIALSTATEMENTS24 STATEMENTI:STATEMENTOFFINANCIALPOSITION24 STATEMENTII:STATEMENTOFFINANCIALPERFORMANCE25 STATEMENTIII:STATEMENTOFCHANGESINNETASSETS26 STATEMENTIV:STATEMENTOFCASHFLOW27 STATEMENTV:STATEMENTOFCOMPARISON-BUDGETANDACTUALAMOUNTSREVENUE202128 STATEMENTV:STATEMENTOFCOMPARISON-BUDGETANDACTUALAMOUNTSEXPENSES202129 STATEMENTV:STATEMENTOFCOMPARISON-BUDGETANDACTUALAMOUNTSREVENUE2020/2130 STATEMENTV:STATEMENTOFCOMPARISON-BUDGETANDACTUALAMOUNTSEXPENSES2020/2131 NOTESTOTHEFINANCIALSTATEMENTS32 Note1:ObjectivesandBudgetoftheOrganization32 Note2:SignificantAccountingPolicies32 Note3:CashandCashEquivalents37 Note4:Investments37 Note5:Receivables38 Note6:IntangibleAssets39 Note7:Property,PlantandEquipment40 Note8:OtherNon-CurrentAssets41 Note9:PayablesandAccruals42 Note10:EmployeeBenefits42 Note11:TransfersPayable46 Note12:AdvanceReceipts46 Note13:Provisions47 Note14:ContingentAssetsandLiabilities47 Note15:Leases48 Note16:RelatedPartyTransactions49 Note17:ReconciliationofStatementVandStatementII50 Note18:Expenses51 Note19:InvestmentGains/(Losses)52 Note20:FinancialInstruments52 Note21:EventsAftertheReportingDate55 Note22:SegmentReporting55 ANNEX–EXGRATIAPAYMENTS(AUDITEDINFORMATION)57 ANNUALFINANCIALREPORT INTRODUCTION ThefinancialstatementsoftheWorldIntellectualPropertyOrganization(WIPO)fortheyearendedDecember31,2021,aresubmittedtotheAssembliesoftheMemberStatesofWIPO(“WIPOAssemblies”)asrequiredbyRegulation6.7oftheWIPOFinancialRegulationsandRules(FRR).ThefinancialstatementshavebeenpreparedinaccordancewithInternationalPublicSectorAccountingStandards(IPSAS),asdevelopedandapprovedbytheInternationalPublicSectorAccountingStandardsBoard(IPSASB). ThereportoftheExternalAuditorontheauditofthe2021financialstatements,togetherwithhisopiniononthefinancialstatements,arealsosubmittedtotheWIPOAssembliesasprescribedunderRegulation8.11andAnnexIIoftheFRR. Theannualfinancialreport,includingfinancialstatementdiscussionandanalysis,ispresentedinthisdocumentalongsidethefinancialstatementsandtheannualstatementoninternalcontrol. FINANCIALSTATEMENTDISCUSSIONANDANALYSIS ThefollowingfinancialstatementdiscussionandanalysisincludesanoverviewoftheOrganization’soperationsandenvironment,financialobjectivesandstrategies,riskmanagementstrategy,financialperformanceandfinancialpositionduringtheyearendedDecember31,2021.DuetothecontinuedglobalimpactoftheCOVID-19pandemic,aseparateoverviewofitseffectsontheOrganization’soperationsandfinancialresultshasagainbeenincluded.ThediscussionandanalysishasbeenpreparedinaccordancewithIPSASBRecommendedPracticeGuideline2,andisintendedtoprovideanexplanationofthesignificantitems,transactions,andeventspresentedinthefinancialstatementsandthefactorsthatinfluencedthem.ThisdiscussionandanalysisisnotpartofWIPO’sfinancialstatements;howeveritshouldbereadtogetherwithWIPO’sfinancialstatements. OperationsandEnvironment WIPOistheglobalforumforintellectualpropertyservices,policy,informationandcooperation.ItisanintergovernmentalorganizationandspecializedagencyoftheUnitedNations,with193MemberStates.TheOrganization’smissionistoleadthedevelopmentofabalancedandeffectiveglobalintellectualpropertyecosystemtopromoteinnovationandcreativityforabetterandmoresustainablefuture.TheOrganization’smandate,governingbodiesandproceduresaresetoutintheWIPOConventionof1967,whichestablishedWIPO. WIPO’sMemberStatesdeterminethedirection,budgetandactivitiesoftheOrganizationthroughthedecision-makingbodies.Themainpolicyanddecision-makingbodiesofWIPOaretheGeneralAssembly,theConferenceandtheCoordinationCommittee.TheGeneralAssemblyconsistsofStatespartytotheWIPOConventionwhicharemembersofanyoftheUnionsadministeredbyWIPO.TheGeneralAssemblyconstitutedtheProgramandBudgetCommitteetoconsidermattersrelatingtoprogram,budget,premisesandfinance.TheConferenceiscomposedoftheStatespartytotheWIPOConventionwhetherornottheyaremembersofanyoftheUnions,andis,interalia,thecompetentbodyforadoptingamendmentstotheConvention.TheCoordinationCommitteeconsistsofelectedmembersoftheExecutiveCommitteesoftheParisortheBerneUnions,orboth,one-fourthoftheStatespartytotheWIPOConventionwhicharenotmembersofanyoftheUnions,andSwitzerland,astheStateonwhoseterritorytheOrganizationhasitsheadquarters. TheGeneralAssemblyappointstheWIPODirectorGeneraluponnominationbytheCoordinationCommittee.ThecurrentDirectorGeneral,Mr.DarenTang,wasappointedonMay8,2020,andbeganhissix-yeartermonOctober1,2020.TheDirectorGeneralisthechiefexecutiveoftheOrganization.TheDirectorGeneralisassistedbytheSectorLeads(consisting