29. Reserves

Association capital

The association capital is CHF 5 million.

Restricted reserves

Pursuant to article 61 of the FIFA Statutes, FIFA has to balance out revenue and expenditure over the financial period and build up sufficient reserves to guarantee the fulfilment of its major duties. The purpose of the reserves is to protect FIFA against risks and unforeseen events, in particular in relation to the FIFA World Cup™. The financial dependency of FIFA on the FIFA World Cup, which takes place only every four years, needs to be considered, since the FIFA World Cup is FIFA’s main revenue source. The restricted reserves cover, in particular, future non-profit activities, such as development programmes and other FIFA events. The use of the reserves is restricted to FIFA’s statutory duties such as the organisation of international competitions – in particular the FIFA World Cup – and the implementation of football-related development programmes. Restricted reserves include remeasurement gains and losses on the net post-employment benefit obligation.

Translation reserves

The translation reserves comprise all foreign currency differences arising from the translation of the financial statements of foreign operations.

Cash flow hedge reserves

The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income in the cash flow hedge reserve.

Fair value reserves of financial assets at FVOCI

FIFA has certain debt investments measured at FVOCI for which changes in fair value are accumulated in these separate reserves. The accumulated changes in fair value are transferred to profit or loss when the investment is derecognised or impaired.

Capital management

FIFA was established in the legal form of an association in accordance with articles 60ff. of the Swiss Civil Code. Pursuant to article 2 of its Statutes, FIFA’s objective is to improve the game of football constantly and promote it globally, particularly through youth and development programmes. FIFA is a non-profit organisation and is obliged to spend its results, reserves and funds for this purpose. As FIFA is an association, no dividends are paid. In the event of the dissolution of FIFA, its funds shall not be distributed, but transferred to the supreme court of the country in which the headquarters are situated. The supreme court shall invest them in gilt-edged securities until the re-establishment of the federation. FIFA’s goal is to maintain its solid reserve level in order to cover inherent risks in connection with the FIFA World Cup and to finance its non-profit activities, especially future development activities and other FIFA events.


28. Leases

30. Financial risk management