2017 ITF Annual Report and Financial Statements

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32 32. FINANCIAL INSTRUMENTS (CONTINUED) f) Capital Management The group's main assets are its investments and deposits, the management of which is charged to specialist investment managers who operate under investment guidelines which are regularly reviewed by the directors. There is a combined risk on this asset – firstly, the performance of the investment managers and secondly the performance of the bond and equity markets. The directors have taken a prudent view of future returns from the investments in their long term financial planning and es mates. 33. OPERATING LEASES Non-cancellable opera ng lease rentals are payable as follows: Less than one year Between one and five years Greater than five years The significant lease relates to the ITF offices in Roehampton, UK. The lease runs un l February 2023. The uncondi onal tenant-only break clause at February 2018 has not been exercised. 34. CONTINGENCIES There were no con ngencies provided for at 31 December 2017. 35. SUBSEQUENT EVENTS On 25 February 2018, the ITF Board of Directors unanimously endorsed a proposal to create a major new annual season-ending World Cup of Ten- nis Finals event. This proposal is subject to further development, and successful comple on of due diligence and finalisa on of a formal agreement. The proposal is also required to be submi ed to the ITF Annual General Mee ng in August 2018 for final approval, requiring a two-thirds majority vote. The proposed partnership with investment group Kosmos is for a 25-year period. An es mate of the direct financial effect on ITF Trust cannot be made. 36. RELATED PARTIES The ITF is a member organisa on and undertakes rou ne transac ons every year with its members such as subscrip on income and prize money payable for team compe ons. Where the group enters into a transac on with a member organisa on which is not rou ne it shall be disclosed separately in the financial statements. During the year, the Kazakhstan Tennis Federa on, whose president Mr Bulat Utemuratov is a director of ITF Limited, provided funding to the group of $721,000 for the 12-and-under team compe on development programme. No other non-rou ne member organisa on transac ons arose during the year. 2017 $000 515 1,891 0 2,406 2016 $000 473 2,073 50 2,596 NOTES (forming part of the financial statements)

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