INTRODUCTION
The financial statements of the World Intellectual Property Organization (WIPO) for the year ended December 31,
2020, are submitted to the Assemblies of the Member States of WIPO (“WIPO Assemblies”) as required by
Regulation 6.7 of the WIPO Financial Regulations and Rules (FRR). The financial statements have been prepared
in accordance with International Public Sector Accounting Standards (IPSAS), as developed and approved by the
International Public Sector Accounting Standards Board (IPSASB).
The report of the External Auditor on the audit of the 2020 financial statements, together with his opinion on the
financial statements, are also submitted to the WIPO Assemblies as prescribed under Regulation 8.11 and Annex
II of the FRR.
The annual financial report, including financial statement discussion and analysis, is presented in this document
alongside the financial statements and the annual statement on internal control.
FINANCIAL STATEMENT DISCUSSION AND ANALYSIS
The following financial statement discussion and analysis includes an overview of the Organization’s operations
and environment, financial objectives and strategies, risk management strategy, financial performance and financial
position during the year ended December 31, 2020. This year, due to the unprecedented global impact of the
COVID-19 pandemic, a separate overview of its effects on the Organization’s operations and financial results has
also been included. The discussion and analysis has been prepared in accordance with IPSASB Recommended
Practice Guideline 2, and is intended to provide an explanation of the significant items, transactions, and events
presented in the financial statements and the factors that influenced them. This discussion and analysis is not part
of WIPO’s financial statements; however it should be read together with WIPO’s financial statements.
Operations and Environment
WIPO is the global forum for intellectual property services, policy, information and cooperation. It is a specialized
agency of the United Nations, with 193 Member States. The Organization’s mission is to lead the development of a
balanced and effective global intellectual property ecosystem to promote innovation and creativity for a better and
more sustainable future. The Organization’s mandate, governing bodies and procedures are set out in the WIPO
Convention of 1967, which established WIPO.
WIPO’s Member States determine the direction, budget and activities of the Organization through the decisionmaking
bodies. The main policy and decision-making bodies of WIPO are the General Assembly, the Conference
and the Coordination Committee. The General Assembly consists of States party to the WIPO Convention which
are members of any of the Unions administered by WIPO. The General Assembly constituted the Program and
Budget Committee to consider matters relating to program, budget, premises and finance. The Conference is
composed of the States party to the WIPO Convention whether or not they are members of any of the Unions, and
is, inter alia, the competent body for adopting amendments to the Convention. The Coordination Committee consists
of elected members of the Executive Committees of the Paris or the Berne Unions, or both, one-fourth of the States
party to the WIPO Convention which are not members of any of the Unions, and Switzerland, as the State on whose
territory the Organization has its headquarters.
The General Assembly appoints the WIPO Director General upon nomination by the Coordination Committee. The
current Director General, Mr Daren Tang, was appointed on May 8, 2020, and began his six-year term on October 1,
2020. Mr Tang succeeds Mr Francis Gurry, who served as WIPO Director General from October 1, 2008. The
Director General is the chief executive of the Organization. The Director General is assisted by the Sector Leads
(consisting of the Deputy Directors General and the Assistant Directors General) in providing the strategic direction
of WIPO’s programs and in managing their respective Sectors to ensure the delivery of results in line with the
Organization’s strategic goals and the Program and Budget.
WIPO generates most of its revenue from fees that are paid by users of its intellectual property services for patents,
trademarks and industrial designs. These services are provided through the Patent Cooperation Treaty (PCT),
Madrid and Hague systems. In 2020, fees from these activities represented 94.3 per cent of the Organization’s total
revenue, with PCT system fees alone representing 76.6 per cent. The driver for revenue from these fee-based
services is the international demand for intellectual property titles. Other external factors that may influence the
Organization’s revenue from its fee-based services include research and development investment levels,
technological confidence levels, and exchange rate fluctuations.
WIPO ANNUAL FINANCIAL REPORT AND FINANCIAL STATEMENTS 2020
Financial Objectives and Strategies
The financial activities of WIPO are governed by its Financial Regulations, which are approved by the General
Assembly. Financial Rules are established by the Director General in accordance with the provisions of the Financial
Regulations. WIPO’s Member States are informed of any modification of the Financial Rules. The Financial Rules
govern all the financial management activities of the Organization. Authority and responsibility for the
implementation of the Financial Regulations and Rules is delegated by the Director General to the Controller.
Every two years, the Director General presents a Program and Budget to Member States for approval. It details
expected results, performance measures and budgetary planning for all proposed activities. The Program and
Budget for the 2020/21 biennium was approved by the Assemblies of the Member States of WIPO in October 2019.
The Program and Budget provides the planning for the biennium within the overall strategic context of the Medium-
Term Strategic Plan.
The Organization uses a Results-Based Management system to ensure that resources are budgeted and utilized
in line with organizational results and priorities. Organizational performance is measured and analyzed on a regular
basis through performance indicators, targets and baselines. Under this system, both the Program and Budget and
the Medium-Term Strategic Plan form part of WIPO’s planning framework, along with annual work plans and
individual staff objectives.
The Organization manages the levels of its reserves in accordance with its Policy on Reserves. WIPO’s reserves
are accounted for as the net assets of the Organization, and serve to minimize the impact of income shortfalls and
maximize the probability that the Organization can meet its obligations in the short term and maintain financial
stability. One core element of the policy is the mechanism for establishing the required level of reserves as a
percentage of the estimated biennial expenditure of the Unions administered by the Organization. The policy also
establishes the principles and approval mechanism for the use of reserves for one-time projects for capital
improvements and exceptional circumstances.
The Organization manages its investments in accordance with its Policy on Investments. The policy states that the
primary objectives of the Organization’s investment management, in order of importance, shall be: (i) preservation
of capital; (ii) liquidity and (iii) within the constraints of (i) and (ii), the rate of return. The Organization aims to achieve
a market rate of return whenever appropriate and possible for both operating and core cash. Strategic cash is
