ITF

4. CHANGES IN ACCOUNTING POLICIES New and amended standards adopted by the group The group has applied the following standards and amendments for the first me for their annual repor ng period commencing 1 January 2018: IFRS 9 Financial Instruments IFRS 15 Revenue from Contracts with Customers The group had to change its accoun ng policies following the adop on of IFRS 9 and IFRS 15. This is disclosed in note 40. IFRS 9 and IFRS 15 did not have any material impact on the amounts recognised in prior or current periods and are not expected to significantly affect future periods. Therefore, retrospec ve adjustments following the adop on of these standards have not been made as the compara ve financial statements s ll give a true and fair view of the group's affairs under the new accoun ng policies. Other than the above, the accoun ng policies adopted are consistent with those of the previous financial year. New standards and interpreta ons not yet adopted Certain new accoun ng standards and interpreta ons have been published that are not mandatory for 31 December 2018 repor ng periods and have not been early adopted by the group. The group's assessment of the impact of these new standards and interpreta ons is set out below. IFRS 16 - Leases IFRS 16 was issued in January 2016. It will result in almost all leases being recognised on the balance sheet by lessees, as the dis nc on between opera ng and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability (to pay rentals) are recognised. The only excep ons are short-term and low-value leases. At the repor ng date, the group has non-cancellable opera ng lease commitments of US$2,629,000 rela ng en rely to the Roehampton offices, see note 36. The group expects to recognise right-of-use assets of the full $2,629,000 on 1 January 2019, lease liabili es of $2,629,000 split between current $638,000 and non-current $1,991,000. In line with the requirements of IFRS 16 these will be discounted at an appropriate rate. Addi onal disclosures will be required from next year. The group will apply the standard from its mandatory adop on date of 1 January 2019. The group intends to apply the simplified transi on approach and will not restate compara ve amounts for the year prior to first adop on. Right-of-use assets will be measured at the amount of the lease liability on adop on (adjusted for any prepaid or accrued lease expenses). 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 and 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 and television income Sponsorship 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. Television income is recognised in accordance with the terms of the contract and the accoun ng period to which it relates. iii) Grand Slam Development Fund and 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 receipts and expenditure held on the balance sheet as deferred income or a debtor. As at 31 December 2018, the Grand Slam Development Fund had a reserve of $1,189,000 (2017: $1,169,000), and the Wheelchair Tennis Development Fund had a reserve of $46,000 (2017: $75,000). 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. ITF ANNUAL REPORT AND FINANCIAL STATEMENTS / 15 Notes (Forming part of the financial statements)

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