references
FINANCIAL REPORT
l) Capital of the organization
The founding capital (paid-in capital) of EUR 32,510 (CHF 50,000) referenced in the statutes was received from the founding members of DNDi, including the Indian Council of Medical Research, the Institut Pasteur, the Kenya Medical Research Institute, and the International Office of Médecins Sans Frontières. The capital is fully paid in.
m) Restricted and unrestricted reserves
Restricted and unrestricted reserves represent the excess of income over expenditure since the inception of DNDi. Restricted reserves are available to DNDi for future operations and project funding costs as its evolving research and development project pipeline dictates. Unrestricted reserves will be utilized for expenditures of DNDi as incurred.
n) In-kind donations
Gifts-in-kind are not recorded but disclosed in the notes to the financial statements and valued at fair market values according to the following principles: Goods transferred to a DNDi project or services rendered to DNDi must be free, excluding the involvement of a monetary transfer. They must be: • Clearly identifiable and part of DNDi’s projects and activities as defined by DNDi’s action plans and budgets; • Recognizable as a visible contribution to DNDi’s projects and activities and in line with DNDi’s mission and objectives. Partners’ voluntary involvement in joint projects and activities, in particular if the partner does not aim to achieve DNDi’s project objectives, are not considered as gifts-in-kind. For goods or services paid at prices below market prices, the difference between real payment and current market price is not considered as a gift-in-kind. Fair market value is defined as the price DNDi would have paid to utilize the goods or service. Fair market value can be suggested by partners. However, DNDi will be careful not to overestimate such valuations in compliance with Swiss GAAP FER 3 basic principles of materiality and prudence. Gifts-in-kind estimated at EUR 5,000 and above are taken into account. Exceptions can be made by DNDi when it serves the purpose of providing consistency and completeness of a project’s accounts.
DNDi Annual Report 2015 › 75
