INTERNATIONAL FEDERATION OF RED CROSS AND RED CRESCENT SOCIETIES, GENEVA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Page 19
Public
2.4 Restricted reserves Funds held for operations 2022 2021 CHF 000s CHF 000s Operations with temporary deficit financing
( 10,518)
( 15,717)
Defined benefit pension obligations recognised in Other Comprehensive
Income
13,622
( 556)
Donor-restricted contributions
438,113
239,970
441,217
223,697
Restricted reserves represent the cumulative excess of income over expenditure for other resources activities. Restricted
reserves include the following:
Donor-restricted voluntary contributions and donations The cumulative excess, of earmarked voluntary contributions and donations over expenditure, is recorded as Funds held
for operations within restricted reserves. In the event that it is determined that funds will not be spent as originally agreed,
the IFRC obtains agreement from the National Society or other donor for a reallocation of those funds for a different use,
or reimburses them to the National Society or other donor, in which case they are recognised as liabilities until the
effective repayment takes place.
Operations with temporary deficit financing Expenditure on individual projects may temporarily exceed the amount of income allocated to those projects at reporting
dates. This excess of expenditure over income is separately reflected within Funds held for operations as Operations with
temporary deficit financing, so long as management considers that future funding will be forthcoming. When the IFRC
considers that future funding is unlikely to be forthcoming, the deficit is reclassified as unrestricted expenditure, and
reflected as a reduction in unrestricted reserves, through the provision for pledge and services deficits.
