ITF

31.Deferred Income 2012 2011 $000$000 (a) Current Receipts in advance 10,0288,984 Olympic deferred income 5,383- Hopman Cup Pty Ltd 4,3354,348 Grand Slam Development Fund 4211,097 20,16714,429 (b) Non-current Olympic deferred income 10,767- The deferred income in Hopman Cup has arisen because of the revenue recognition policy described in note 5a. Further expenses will be incurred in 2013 and the anticipated net surplus after taxation from the event, which will be reflected in the financial statements for 2013, is expected to amount to AUS$300,000. Olympic income in 2012 totalled $23,090,000 with direct event related expenses of $1,557,000 (net $21,533,000) for the fouryear Olympiad from 2012 to 2015 inclusive. $5,383,000 was recognised as income in 2012 and the remainder has been deferred and will be released evenly to the consolidated income and expenditure account from 2013 to 2015. 32.Financial instruments a) Fair values of financial instruments Investments in debt and equity securities The fair value of available-for-sale financial assets is determined by reference to their quoted bid price at the balance sheet date. Trade and other receivables The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at the balance sheet date if the effect is material. Trade and other payables The fair value of trade and other payables is estimated as the present value of future cash flows, discounted at the market rate of interest at the balance sheet date if the effect is material. Cash and cash equivalents The fair value of cash and cash equivalents is estimated as its carrying amount where the cash is repayable on demand. Where it is not repayable on demand then the fair value is estimated at the present value of future cash flows, discounted at the market rate of interest at the balance sheet date. Derivative financial instruments The fair value of forward exchange contracts is based on their listed market price, if available. If a listed market price is not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on government bonds). ITF FINANCIAL STATEMENTS 59

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