Annual Report 2024 2025

The financial statements for the year ended 30 June 2025 for the Schwab Foundation for Social Entrepreneurship, Young Global Leaders, Global Shapers Community, and World Arts Forum, as included in these consolidated statements, are based on information provided by each entity. They were not discussed with their respective chairs and had not yet been approved by their respective Boards of Foundation as of the date of approval of these consolidated financial statements. Change to the scope of consolidation There is no change in the scope of the consolidated financial statements for the year 2025. Foreign currency The elements included in the Forum’s financial statements are measured in the currency that best reflects the economic reality of the transaction. The accounts are presented in CHF, which is the Forum’s functional currency. Transactions in foreign currencies Transactions in foreign currencies are converted to the functional currency at the opening rate of the current month and provided by the Swiss Administration for foreign currencies. At the closing date, balance sheet items (with the exception of the Funds) denominated in foreign currencies are revaluated to the functional currency at the average rate of the following month and provided by the Swiss Administration. The exchange losses and gains arising from the settlement of the transactions and from the re-evaluation in foreign currencies are posted to the profit and loss statement. Conversion into Swiss francs The consolidated accounts are prepared and presented in CHF. The controlled entities express their financial statements in local currency. The individual items in the profit and loss statements, as well as the cash flow statements of the foreign entities, are converted into the functional currency at the average exchange rate for the year published by the Swiss Administration for foreign currencies. The balance sheet items (with the exception of the Funds) are converted into the functional currency at the spot rates published by the Swiss Administration for foreign currencies. The conversion differences resulting from the translation of the balance sheet items have no effect on the profit and loss statements and are recognized in the Funds along with the translation differences on the profit and loss statement arising from the difference between the average and the year-end exchange rate. Significant accounting judgements, estimates and assumptions The preparation of the Forum’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and the accompanying disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities, which would be affected in future periods. Judgements In the process of preparing those financial statements, management made the following judgements: Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The organization based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the organization. Such changes are reflected in the assumptions when they occur. Impairment of non-financial assets Impairment exists when the carrying value of an asset or cash- generating unit exceeds its recoverable amount. The fair value of the category “buildings” is determined by an expert every five years based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs of disposing of the asset. Allowance for doubtful accounts The organization computes its provision for allowance on doubtful accounts based on the ageing of its trade receivables. All trade receivables at the balance sheet date older than 180 days are fully provisioned, including some invoices where the probability of collection is low and which pose a risk to debt. Systematic risks, in addition to external factors, can arise, which may change assumptions and future developments. These are beyond the control of the Forum. Cash and short-term cash deposits This item represents assets in current accounts as well as short-term cash deposits. These transactions are recorded at the exchange rate prevailing at the time of the transaction. These items are revalued at the year-end at the closing rate. Receivables Receivables are recorded at the amount originally invoiced. Bad debt allowance is established based on a review of the open items at the end of the period, as per the allowance for doubtful accounts. Amounts that are definitively unrecoverable are written off. Annual Report 2024-2025 Financial Statements69