ITF

16 5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) Revenue recogni on Revenue is recognised to the extent that it can be reliably measured in the year to which it relates. The following specific recogni on criteria must also be met before revenue is recognised: i) Subscrip ons & authorisa on fees The annual contribu ons from the ITF member na ons and the Official and Recognised Tennis Championships of the ITF are recognised in the period for which they are due. ii) Sponsorship, compe on & television income Sponsorship income is recognised in accordance with the terms of the contract and the accoun ng period to which it relates. Television income is recognised in accordance with the terms of the contract and the accoun ng period to which it relates. Compe on income is recognised in the period in which the compe on took place. iii) Grand Slam Development Fund & Wheelchair Tennis Development Fund income The Grand Slam Development Fund and Wheelchair Tennis Development Fund income and expenditure are shown through the ITF's income and expenditure statement. Income is recognised when qualifying expenditure is made, with any difference between income and expenditure held on the balance sheet as deferred income or a debtor. As at 31 December 2017, the Grand Slam Development Fund had a surplus of $1,169,000 (2016: $843,000), and the Wheelchair Tennis Development Fund had a surplus of $75,000 (2016: $50,000). The mission of the Grand Slam Development Fund is to support compe ve tennis opportuni es worldwide. iv) An -doping income An -doping income is recognised in accordance with the terms of the agreement and the accoun ng period to which it relates, where an - doping services are provided for specific events. An -doping income rela ng to penal es is recorded once it is probable that the economic benefit associated with the transac on will flow to the group. v) Data Sales income Data Sales income is recognised in accordance with the terms of the contract and the accoun ng period to which it relates. vi) Technical and sundry income Technical income is derived from tes ng tennis equipment and is recognised in accordance with the terms of the agreement and the accoun ng period to which it relates. Sundry income is derived mainly from recharges to the Grand Slam Board and Tennis Integrity Unit for office and administra on costs. Rent is charged and recognised as per the terms of the lease and the accoun ng period to which it relates. Also included within technical and sundry income is subscrip on monies for the ITF Founda on which allows members to consult and collaborate with the ITF in the process of manufacturing tennis equipment. vii) Olympic income Olympic income, net of directly a ributable expenses, is released to the income and expenditure statement over the four years of the Olympiad, star ng in the year the games are held. Note 30 provides further informa on on Olympic income. b) Investment income/expense and gains/losses on investments Investments are valued at their fair value, which is determined by reference to quoted market bid prices at the balance sheet date. Valua ons are provided by the investment managers. Gains or losses arising from this valua on are shown in the consolidated income and expenditure statement in accordance with IAS 39.9. Interest is recognised in the income statement on an accruals basis, and dividend income is recognised when the ITF's right to receive payment is established. NOTES (forming part of the financial statements)

• Cover