It has led to equity of CHF 461million as of 31 December 2005.
The 2005 surplus of CHF 214million (2004: CHF 158million) results from revenue totalling CHF 874million (2004: CHF 740million) and overall expenditure of CHF 660million (2004: CHF 582million).
The rise in revenue compared with the 2004 figures was influenced partially by the increase in value of the US dollar. Starting from its next four-year financial cycle (2007-2010), FIFA will convert its balance sheet and income statement into US dollars as this is the currency used for the majority of the governing body’s transactions.
FIFA president Sepp Blatter said: "Having surpassed our target of equity totalling CHF 450million a year ahead of schedule, FIFA has reinforced its financial standing and independence in line with the strategy determined by the Executive Committee and the Finance Committee."
General Secretary Urs Linsi said: "Having sufficient equity, which FIFA intends to add to in its next financial cycle by carefully managing its income, is now an essential requirement because it is no longer possible to secure cancellation insurance cover of the requisite magnitude for an event the size of the FIFA World CupB."
With this in mind, FIFA has set itself the clear objective of reducing its dependence on the FIFA World CupB.
It is therefore seeking to increase its equity to such a level that running costs can in future be financed by the funds remaining from the previous World Cup rather than needing to cover them using prepayments relating to the subsequent event.
This process will, however, take several World Cup cycles to complete.
