ITF

NOTES (FORMING PART OF THE FINANCIAL STATEMENTS) 1. Basis of preparation Statement of compliance 2. Basis of consolidation The following wholly owned subsidiaries are included in the consolidated financial statements: Subsidiary and country of registration Principal activity ITF Limited Bahamas Development and administration of tennis worldwide UK Roehampton Investments Limited Bahamas Management of ITF investment portfolio Hopman Cup Pty Limited Australia Operation and commercial management of Hopman Cup Hopman Cup Pty Ltd is a wholly owned subsidiary of ITF Licensing (UK) Ltd. The principal place of business of the ITF Trust is Bank Lane, Roehampton, London SW15 5XZ. 3. Principal activities 4. Changes in accounting policies New and amended standards adopted by the group IFRS 16 Leases The consolidated financial statements have been prepared on a going concern basis under the historical cost convention as modified by fair value accounting for forward currency contracts and investments, in accordance with IFRS 7. To make the distinction between Operating, Strategic and Investing Activities clearer, the Consolidated Income Statement separately shows income and expenses related to Operating Activities, to Strategic Initiatives and to Investing Activities, i.e. the investment portfolio. The consolidated financial statements of the ITF Trust have been prepared and approved by the directors in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS. The functional and presentational currency of the ITF Trust is US Dollars and all values are rounded to the nearest thousand ($'000) except when otherwise indicated. The consolidated financial statements comprise the financial statements of the subsidiaries of ITF Trust as at 31 December each year. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the group obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, with the exception of Hopman Cup Pty Ltd which has a year-end reporting date of 31 March. The results of Hopman Cup Pty Ltd from 1 January 2019 to 31 December 2019 have been consolidated in these financial statements. Other than the above, the accounting policies adopted are consistent with those of the previous financial year. The group has applied the following standards and amendments for the first time for their annual reporting period commencing 1 January 2019: All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions are eliminated in full. The principal activities of the group are the development and administration of the game of tennis worldwide. The ITF Trust is domiciled in the Bahamas. The office of the ITF Trust is PO Box N-272, Nassau, Bahamas. The Board of Directors of ITF Limited, in their capacity as Advisory Committee to the ITF Trust, are responsible for the overall management of the ITF, including its strategic direction, holding its meetings outside the UK. ITF Licensing (UK) Limited Operation and commercial management of ITF competitions The group had to change its accounting policies as a result of adopting of IFRS 16. This is disclosed in note 42. IFRS 16 did not have any impact on the amounts recognised in prior periods due to the application of the simplified transition approach. 14

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