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WT/BFA/W/ 500 
30 October  2019 
(19-7305) Page: 1/3 
Committee on Budget, Finance and Administration    
 
REVIEW OF SELECTED F INANCIAL REGULATIONS  OF THE WORLD TRADE ORGANIZATION  
 
 
1  FINANCIAL REGULATION S PROPOSED FOR REVIE W 
1.1.  During its meetings on 30 April , 17 June  and 24 September  2019 the CBFA considered 
reformulated text for Financial Regulations 4, 17, 19, 23, 26, 27, 28, 29, 37, 38 and 42, presented 
through documents WT/BFA/W/478 , WT/BFA/W/4 85 and WT/BFA/W/4 94.  
1.2.  By 17 June, t he CBFA had endorsed the revised text for Financial Regulations 4, 17, 19, 26,  
27, 37, 38 and 42.  
1.3.  On 24 September 2019, the CBFA held further discussion s related to Financial Regulations 23, 
28 and 29 . As no agreement was reached, an informal s ession of the CBFA was held on 3  October 
2019 to further discuss these three Financial Regulations.  
1.4.  On further consultations and discussions, a  determination was made that the version of 
Financial Regulation 28 that is currently in force is preferable as some aspects of the changes 
proposed to it, in a bid to find consensus on the text, rendered the substance largely unchanged. 
Therefore, Fin ancial Regulation 28 is being proposed for withdraw al from the list of Financial 
Regulations to be revised and submitted to the General Council.  
1.5.  Table 1 of this document presents the updated reformulation of Financial Regulations 23  and 
29.  
 
 
 
 
 
 
 
 
 
 
 
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- 2 - TABLE 1 – FINANCIAL REGULATIONS  PROPOSED FOR REFORMULATION  
FINANCIAL 
REGULATION  PROPOSED REFORMULATION OF SELECTED REGULATIONS  
23 a) The budgetary result is defined as the sum of assessed contributions and projected miscellaneous income, less, the sum of actual 
expenditure and actual miscellaneous income.  
 
b) The actual expenditure does not t ake into account the variations in the actuarial provisions for the long -term liabilities associated 
with staff pensions and After Service Health Insurance if they have not been included in the approved budget.  
 
c) The annual budgetary result shall be repo rted in the WTO Financial Performance Report. If, at the end o f a financial period, the 
budgetary result shows a positive balance, the Director -General shall make specific recommendations to the General Council, 
through the Committee, for the redistributio n of the annual budgetary savings in any of the following ways:  
 
   i) Application as income against the budget for the next applicable financial period following that in which the budgetary sa vings 
occur, thereby reducing Members' contributions ; 
 
ii) Transfer to the Working Capital Fund; or  
 
         iii) Transfer to the Reserves.  
 
d) If at the end of a financial period the budgetary result shows a deficit this amount will be covered, to the extent possib le, by 
transfer from the Working Capital Fund. Any part of the deficit left uncovered after transfer of funds from the Working Capi tal 
Fund shall be included in the budget for the next possible financial period.  
 
23 bis  a) Assets are defined as r esources controlled by an entity as a result of past events and from which future economic benefits or 
service potential are expected to flow to the entity.  
 
b) Liabilities are defined as p resent obligations of the entity arising from past events, the settlement of which is expected to result 
in an outflow from the entity of resources embodying economic benefits or service poten tial.  
 
c) Equity  is defined  as the residual interest in the assets of the entity after deducting all its liabilities.  
 
23 ter  The sum  of the budgetary result for the period and IPSAS adjustments, including the actuarial provisions for pension and After Service 
Health Insurance, determine the WTO year -end financial result. The financial result is for information purposes only.  
29 
 Subject to a decision by the General Council, countries or separate customs territories which for any reason cease to be Members of 
the WTO shall be entitled to the reimbursement of the total amount of their shares in the Working Capital Fund under Financial 
Regulation 24(a)  provided that they have ho noured all liabilities attributable to them .  
 
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- 3 - 2  RECOMMENDATION  
2.1 The Committee invites the General Council to approve the revised Financial Regulations of the World Trade Organization, to be contained in 
document WT/L/156/Rev.4, with specific revisions to Financial Regulations 4, 17, 19, 23, 26, 27, 29 , 37, 38 and 4 2. 
 
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