ITF

NOTES (FORMING PART OF THE FINANCIAL STATEMENTS) 4. Changes in accounting policies (continued) New standards and interpretations not yet adopted 5. Summary of significant accounting policies a) Revenue recognition i) Subscriptions and authorisation fees ii) Sponsorship, competition and television income Competition income is recognised in the period in which the competition took place. iii) Grand Slam Development Fund and Wheelchair Tennis Development Fund income iv) Anti-doping income v) Data sales income vi) Technical and sundry income vii) Olympic income Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2019 reporting periods and have not been early adopted by the group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. Revenue is recognised to the extent that it can be reliably measured in the year to which it relates. The following specific recognition criteria must also be met before revenue is recognised: The annual contributions from the ITF member nations and the official and recognised tennis championships of the ITF are recognised in the period for which they are due. 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. Sponsorship income is recognised in accordance with the terms of the contract and the accounting period to which it relates. Television income is recognised in accordance with the terms of the contract and the accounting period to which it relates. As at 31 December 2019, the Grand Slam Development Fund had a reserve of $1,261,000 (2018: $1,189,000), and the Wheelchair Tennis Development Fund had a reserve of $45,000 (2018: $46,000). Technical income is derived from testing tennis equipment and is recognised in accordance with the terms of the agreement and the accounting period to which it relates. Sundry income is derived mainly from recharges to the Grand Slam Board and Tennis Integrity Unit for office and administration costs. Also included within technical and sundry income is subscription monies for the ITF Foundation which allows members to consult and collaborate with the ITF in the process of manufacturing tennis equipment. Olympic income received subsequent to the Summer Olympic Games is allocated against the performance obligation of controlling and directing the tennis event at the Games on a cost plus margin basis and recognised in that year. The remaining income is allocated using the residual approach to the performance obligation of developing the sport of tennis worldwide and recognised evenly over the four years of the Olympiad beginning in the year the Summer Olympic Games are held. Note 35 provides further information on Olympic income. Income received for other multi-sport events run by the IOC is recognised in the year the event takes place. Data sales income is recognised in accordance with the terms of the contract and the accounting period to which it relates. Anti-doping income is recognised in accordance with the terms of the agreement and the accounting period to which it relates, where anti-doping services are provided for specific events. Anti-doping income relating to penalties is recorded once it is probable that the economic benefit associated with the transaction will flow to the group. The mission of the Grand Slam Development Fund is to support competitive tennis opportunities worldwide. 15

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