icrc-annual-report-2013

32. NON-OPERATING INCOME AND EXPENSES(in KCHF) Note 2013 2012OTHER NON-OPERATING INCOMEDecrease in provisions foroperational claimsDecrease in provisions foraccounts receivable- 57184 656Re-invoiced costs 3,587 9,424Income arising from prior period 1,561 797Gains on disposal of fixed assets 3,626 3,802Other income 994 5,659Adjustments of operations 73 615Total Other non-operating income 9,925 21,524Adjustments of operations concern prior period charges relatingmainly to the transfer of goods and revised estimates of accruals,and do not relate to current field operations.(in KCHF) Note 2013 2012OTHER NON-OPERATING EXPENSESIncrease in provisionsfor operational claimsIncrease in provisionsfor accounts receivableIncrease in provisions for obsoleteinventories-188 --1 -67-112 -524Expenditure arising from prior period -1,059 -129Net interest cost on post-employmentobligations22 -5,849 -6,900Losses on disposal of fixed assets -270 -742Other expenses -3,359 -8,450Total Other non-operating expenses -10,838 -16,81233. TAXESThe ICRC (but not its staff) is exempt from taxes in Switzerlandand most countries in which its delegations are based.34. FINANCIAL RISK MANAGEMENTOBJECTIVES AND POLICIESThe ICRC has various financial assets, such as cash and cash equivalents,investments, accounts receivable, long-term receivablesand other financial assets. The main financial liabilities compriseloans and borrowings, bank overdrafts, accounts payable, accruedexpenses and other financial liabilities.The main risks arising from these financial assets and liabilitiesare market risk and its subsets (foreign currency and interest raterisks), counterparty risk and liquidity risk, which are summarizedbelow.These risks are managed through several treasury policies.Compliance with these policies is monitored by the TreasuryCommittee, which is composed of the director of financialresources and logistics, the head of finance, the head of accountingand the treasurer. These various policies are submitted by theTreasury Committee to the Assembly Council for adoption.a) Foreign currency riskExposureThe foreign currency risk is that the financial statements for a particularperiod or as at a certain date may be affected by changes inthe value of transactions executed in foreign currencies owing tofluctuations.The ICRC’s exposure to the foreign exchange (hereafter FX)translation risk is limited, as both the functional currency andthe reporting currency used for these consolidated financialstatements is the Swiss franc. However, exposure to fluctuationsin FX rates arises from transactions denominated in currenciesother than the Swiss franc. For instance, the ICRC incurs foreigncurrency risk on contributions pledged in foreign currencies.In addition, exchange rate fluctuations can have a significantimpact on the income statement in relation to the ICRC’s operationscarried out worldwide. The currencies giving rise to this riskare primarily the euro, the pound sterling and the US, Australianand Canadian dollars.Long-term receivables in FX relate to deferred income andare principally denominated in pounds sterling and in US andCanadian dollars. The FX exposure of this asset is offset againstthe FX exposure of the deferred income liability.The principal rates of exchange are shown below:(in KCHF)Spot rateAverage rate2013 2012 2013 2012USD 0.8894 0.9163 0.9261 0.9341EUR 1.2259 1.2080 1.2274 1.2051GBP 1.4657 1.4787 1.4466 1.4820AUD 0.7899 0.9518 0.8994 0.9687Most financial assets and liabilities are denominated in Swiss francs,except the following:(Converted to KCHF) 2013 2012CASH AND CASH EQUIVALENTSEuro KCHF 7,786 3,516Pound KCHF 409 6,164US dollar KCHF 17,645 12,809Swedish krona KCHF 2,211 7Central African CFA franc (XAF) KCHF 1,633 626West African CFA franc (XOF) KCHF 2,123 3,334CURRENT AND NON-CURRENT ACCOUNTS RECEIVABLEEuro KCHF 127,499 62,802Pound KCHF 113,351 151,716US dollar KCHF 40,262 6,847New Zealand dollar KCHF 2,544 2,634Australian dollar KCHF 95,183 142,105CONSOLIDATED FINANCIAL STATEMENTS OF THE ICRC 2013 | 559